The Maharashtra State Consumer Disputes Redressal Commission not too long ago directed Reliance Nippon Life Insurance Limited to pay ₹60 lakh alongside with 12% interest and a further ₹2 lakh as compensation for psychological and bodily harassment of the widow of a policyholder.
On August 27, 2016, Rajesh Tiwari, 40, died at MIT Hospital, Aurangabad, due to cirrhosis of the liver and portal hypertension. His widow, Vijeta, contended that he had taken a Life Insurance Policy in April 2015 for a interval of 35 years and paid a yearly premium of ₹9,890 with an assured sum of ₹60 lakhs. After his dying, Ms. Tiwari knowledgeable the corporate about it and issued a letter alongside with a declare type as she was his nominee. However, the corporate refused to pay the declare and stated Tiwari had hid materials information about cirrhosis of liver for 2 years and was hospitalised for a similar in 2016.
Ms. Tiwari then issued a letter to the Ombudsman, Pune, in September 2017, however she was knowledgeable that the grievance can’t be thought-about because it exceeded ₹30 lakh. Ms. Tiwari then moved the Commission and said that her husband didn’t conceal any information about his well being, and he or she has no supply of revenue and desires the cash to take care of her minor youngster.
The Nagpur Bench of the Commission stated, “It cannot be said that the deceased – Rajesh Tiwari had suppressed any material information or material facts so as to invoke section 45 (policy not to be called in question on ground of misstatement after two years) of the Insurance Act. We are of the view that the repudiation of the insurance claim on the ground of concealment of material facts was not justifiable.”
Presiding member A.Z. Khwaja and member Okay.M. Lawande held, “The Insurance company was not justified in denying legitimate insurance claims of the complainant. The company has committed deficiency in service as well as unfair trade practice.”
The Commission directed the corporate to pay ₹60 lakh alongside with interest on the price of 12% from the date of order until its precise realisation, ₹2 lakh as compensation in direction of psychological and bodily harassment and ₹25,000 for price of litigation.
