A consumer court imposed a fine of Rs8,000cr on a insurance compianay after it refused
to pay the fulI insurance amount to a widow and her minor son.The court also asked the firm to pay insurance money to two complainants.
The case is about Mukund Shah of Surat who had bought an insurance policy of 1 crore from Kotak Mahindra Life Insurance Company Ltd in 2002.
Later insurance was increased to Rs 1.15 crore. While taking this policy Shah informed the company that he had differentpolicies of Life Insurance Corporation to the extent of Rs 21 lakh. Shah passed away in 20O5.When his widow Nitaben and minor son Saumin sought the
amount of insurance, Kotak Mahindra paid them Rs 9 lakh instead of Rs 1.15 crore. The company said that it had held back Rs 23lakh because Shah had not,revealed tlnt he had LIC policies worth Rs 41 lakh. Since.he disclosed a cover of Rs 21 lakh only and suppressed information, the amount was deducted from the payment of insurance to his heir.
This stange stand by the insurance company led the claimants to file a complaint with the state consumer disputes redressal commission in 2007 against the company through
advocate Himanslu fitakker They claimed the remaining amount of Rs 23 lakh and compensation
because the insurance company's gesture amount to defieiency in service.
Thc consumer court heard the case and concluded that the deduction of any amount from insured money on the pretext of partial disclosure was against the policy.
Source: Times News Network
to pay the fulI insurance amount to a widow and her minor son.The court also asked the firm to pay insurance money to two complainants.
The case is about Mukund Shah of Surat who had bought an insurance policy of 1 crore from Kotak Mahindra Life Insurance Company Ltd in 2002.
Later insurance was increased to Rs 1.15 crore. While taking this policy Shah informed the company that he had differentpolicies of Life Insurance Corporation to the extent of Rs 21 lakh. Shah passed away in 20O5.When his widow Nitaben and minor son Saumin sought the
amount of insurance, Kotak Mahindra paid them Rs 9 lakh instead of Rs 1.15 crore. The company said that it had held back Rs 23lakh because Shah had not,revealed tlnt he had LIC policies worth Rs 41 lakh. Since.he disclosed a cover of Rs 21 lakh only and suppressed information, the amount was deducted from the payment of insurance to his heir.
This stange stand by the insurance company led the claimants to file a complaint with the state consumer disputes redressal commission in 2007 against the company through
advocate Himanslu fitakker They claimed the remaining amount of Rs 23 lakh and compensation
because the insurance company's gesture amount to defieiency in service.
Thc consumer court heard the case and concluded that the deduction of any amount from insured money on the pretext of partial disclosure was against the policy.
Source: Times News Network
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