The District Consumer Disputes Redressal Commission in Ludhiana has come down heavily on an insurance company for its shocking seven-year delay in settling a death claim. The commission has directed the insurer to finally pay the claim amount to the widow along with interest and significant compensation for the immense hardship caused.
A Seven-Year Ordeal for Justice
According to the case details, the complainant, Babli Kaur from Jalaldiwal village in Jagraon, lost her husband, Joginder Singh, in a tragic road accident on May 24, 2018. An FIR was registered at the City Raikot police station in Ludhiana. Joginder Singh was insured under the Bhagat Puran Singh Sehat Bima Yojna for an accidental death cover of Rs 5 lakh and family medical treatment up to Rs 30,000.
Babli Kaur's struggle began in July 2018 when she first approached the branch manager to settle her husband's claim. She was directed to a toll-free number and told an investigator would visit. By January 2019, with no progress, she was sent to the company's head office in Mohali. In April 2019, the Mohali office assured her that her documents were received and an investigator would be appointed, but nothing materialised. The nationwide Covid-19 lockdown in March 2020 further stalled her efforts.
Commission's Stern Order and Findings
The commission, after examining the evidence, noted that the widow had been "running pillar to post" since her husband's death. It held that the non-settlement of the claim for seven years itself amounted to an unfair trade practice and deficiency in service.
Rejecting the insurance company's defence that there was no consumer-provider relationship, the commission passed a clear order. It directed the insurance company on Raikot Road to settle and pay the death claim of Rs 5 lakh as per the policy terms. Additionally, it must pay interest at 8% per annum on the settled amount from the date of the complaint's filing until actual payment. The entire payment must be completed within 30 days of receiving the order.
Compensation for Mental Agony and Harassment
Recognising the immense suffering endured by Babli Kaur, the commission also directed the opposite parties to pay her a composite cost of Rs 20,000. The complainant had originally sought Rs 50,000 in compensation and Rs 11,000 in litigation expenses, citing the mental tension, agony, and harassment caused by the insurer's delaying tactics.
This ruling serves as a strong reminder to insurance providers about their duty towards claimants and the consequences of adopting dilatory tactics. It reinforces the power of consumer forums in delivering justice to common citizens against powerful corporate entities.
