The Hindu : Andhra Pradesh News : Insurance firm asked to pay sum assured, compensation Consumer Notes

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Andhra Pradesh

Andhra Pradesh

Insurance firm asked to pay sum assured, compensation Consumer Notes

Prabhakkar Sharma

Long delay adds to the woes of the victim, observers forum

VISAKHAPATNAM: The Visakhapatnam District Consumer Forum-I has directed an insurance company, which was providing cover under a tie-up with a bank, to pay the sum assured to a consumer along with compensation for mental agony and litigation costs.

According to the case record, a resident of Varada village in K. Kotapadu mandal in Visakhapatnam district Killi Ramu opened a savings bank account with ING Vysya Bank’s Anakapalle branch.

Tie-up

There was a tie-up between the bank and Royal Sundaram Alliance Insurance Company according to which, in the event of any SB account holder meeting with an accidental death, his or her legal heir would be entitled to Rs.3 lakhs towards accidental benefit. To facilitate the coverage by the insurance company, the bank collected Rs.350 towards insurance coverage and both the bank and the insurance company issued a certificate valid for three years till November 2006.

Ramu met with a road accident in May 2006 when a jeep hit him in Sabbavaram mandal due to rash and negligent driving by its driver. The accident was registered as a case by the police.

The complaint

Ramu’s wife Tallamma submitted her claim along with relevant documents to the insurance company but the claim was not settled. She then filed a complaint (639/07) in the Forum against the bank’s branch manager at Anakapalle and the insurance company’s manager in Chennai seeking payment of policy amount with interest, compensation for mental agony and litigation costs.

The bank contended that it was only a facilitator between the complainant and the insurance company. In case the claim was found valid, the insurer was liable to pay as per the terms of the contract.

The insurance company, in its counter, contended that the complainant failed to furnish the policy number and terms and conditions. Further, a copy of the claim form was also not supplied to it. It argued that the complaint was not maintainable as it was an accident claim, which a tribunal under the Motor Vehicle Act was competent to entertain. It said it was not liable to pay any of the relief and sought dismissal of the complaint with costs.

President of the Forum-I Y. Dhilleswara Rao and members – G. Viswanatha Reddy and D. Suseela – who examined the evidence noted that the bank had furnished the claim forms to the complainant, who had sent them to the insurance company by registered post.

‘Deficiency’

“Thus, it is found from the material on record that the complainant has submitted the claim but the same is not considered so far. The opposite party no. 2 (insurance company) contended during counter that it is making its own investigation in the matter. We are not appraised what the investigation has revealed. From the material on record, the deficiency is established,” they held in a recent judgment. In the result, the insurance company was directed by the Forum to pay Rs.3 lakhs assured under the insurance cover. The Forum also noted that the long delay was an unkind contribution by the OP2 adding to the misery of a victim and awarded Rs.25,000 as compensation. It also awarded Rs.1,500 towards costs.

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