Karnataka - Bellary   

Insurance companies pulled up

BELLARY: The Bellary District Consumers’ Grievance Redressal Forum has ordered The New India Assurance Company here to pay Rs. 1.42 lakh with interest of 9 per cent per annum to its client Krishna Stone Tech company for lapses in service.

Krishna Stone Tech company of Bellary had availed “office protection shield” general policy from the insurance company. Under the policy, up to Rs. 2 lakh would be insured if cash is carried from one place to another. On March 11, 2006, the company’s executive director, Arun Kumar, went to Hyderabad with Rs. 1.42 lakh to purchase raw materials. He was staying at a lodge along with another person, whom he befriended during the journey. After breakfast with his acquaintance, Arun Kumar went to sleep, only to find upon waking up that his money and valuables had been stolen. Thereupon, he lodged a complaint with the police, and later filed a claim seeking compensation from the insurance company. The company, however, rejected the claim citing various rules and regulations.

After hearing both sides, forum president Shekargouda Patil and members Annapurna and J. Basavaraj held that there was a service lapse on part of the insurance company and ordered Divisional Manager of the company to compensate the client.

In another case, the forum president ordered the Manager of Iffco-Tokio General Insurance Company, Bellary, to settle an accident claim of Rs. 44,500 with 9 per cent interest to D. Mastan Sab.

The tractor owned by Mastan Sab met with an accident, and repair costs amounted to Rs. 65,000. The company’s surveyor had estimated the costs at Rs. 44,500 , but did not settle the claim. Maintaining that there was a service lapse on part of the company, the forum directed the former to settle the claim within a month.

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