The Haryana State Consumer Disputes Redressal Forum slapped a penalty of Rs 50,000 on an Insurance Company after finding the settlement of a life insurance claim faulty. The Forum directed the comapany to pay Rs 40 lakh as the insurance amount which was earlier repudiated, to the mother of a deceased Bhiwani resident.
Late Yudhvir Singh, had purchased a Life Insurance policy from Birla Sunlife Insurance in December 2011 which was slated to mature after thirty years. Singh, however, died in a road accident in April, 2012. When his mother, Ram Ratti Devi approached the company with the requisite documents to claim the aforesaid policy, her plea was rejected.
The insurance firm claimed that the replies filed by Singh were false as he was suffering from Tuberculosis (TB) and was undergoing treatment for the same before submitting the proposal form. The company maintained that it was misled to issue the policy and was justified in repudiating the claim.
The mother of the deceased contended that her son didn’t die of TB but he died in a road accident. She had also submitted the copy of the FIR registered.
Contending, the company produced a medical certificate acquired from a civil hospital in Bhiwani claiming that Singh was suffering from TB.
The counsel of the complainant proved that Singh didn’t undergo any treatment for TB anytime before getting the policy. He also proved that the certificate procured by Birla Sunlife was not authentic.
It was established in the Forum that the investigator concerned had given a false report to deprive the rightful claim of the beneficiary to which the Company was now liable to pay the claim amount with an interest of 9 per cent.