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New India Assurance has been directed by the UT Consumer Forum to settle Rs 9 lakhs in accident claims raised by widower whose wife died to electrocution.
In November 2008, Nazir Singh Bhullar had purchased an accident insurance policy of Rs 9 lakhs, after paying the premium amount and fees for medical tests, in the name of his wife Harinder Kaul. Unfortunately, in March 2009, Harinder Kaul died due to electrocution.
The claims raised by the widower were declined by New India Assurance. The claimant provided all the requisite documents, even then the insurance company denied the claims and failed to respond to the legal notices and representations.
Following which, the complainant approached the forum which ruled that the ‘death by electrocution’ covers under accident and hence the insurance company cannot deny the claims.
In its defense, New India Assurance said that there was no deficiency on their part as there was no document to support that the death had occurred solely and directly from the accident.
The district consumer forum comprising of president Lakshman Sharma and other members finally ruled that the denial to pay the claim amounted to deficiency in service, as the insurance company had reached the conclusion without waiting for the final report.
In addition to Rs 9 lakhs, the forum has also directed the company to pay Rs 7,000 as litigation cost to the claimant.