National Insurance to pay Rs 25K for failure to process claim
New Delhi: The failure of the National Insurance Co Ltd (NICL) to process an accidental death claim for four years, has led a consumer forum here to ask it to pay Rs 25,000 as compensation to the kin of the policy holder for its "extreme negligence."
Pointing out to the insurance firm that it should have been "more sympathetic or sensitive," the New Delhi District Consumer Disputes Redressal Forum also directed it to process the claim within three months.
"The present complaint was filed on April 29, 2009 and till today, opposite party (National Insurance) has failed to settle the claim. There is great deficiency on the part of NICL. So holding NICL guilty for deficiency in service, we direct it to process the claim of death and motor cycle in next three months.
"In the present complaint, we have no hesitation in awarding Rs 25,000 as compensation including litigation cost because there is extreme negligence on the part of NICL, in not processing the claim. It should have been more sympathetic or sensitive to complainant," the forum said.
The bench presided by C K Chaturvedi also said the defence taken by the insurance firm that the claim was not processed as relevant documents were not filed in time, "is not justified."
The forum's order came on the plea of Delhi resident Hari Ram, who had said that he filed the claim after his son died in an accident on July 31, 2008. He added that he also had provided all the original papers, including the FIR, post mortem report, registration certificate of the two-wheeler, the death certificate, the copy of the policy etc to the firm.
Ram had said his late son had bought a comprehensive insurance cover from NICL for his motor cycle that also provided personal accident benefits to the owner.
NICL in its defence had contended that Ram only gave intimation in respect of accidental death of his son, but never submitted any documents.