LIC official penalised for rejecting disabled man's claim
In a bid to check rejection of insurance claims on "flimsy" grounds, the Delhi Consumer Commission has penalised an official of the Life Insurance Corporation for wrongly rejecting a disabled man's claim and asked him to pay, from his salary, one-...
By PTI |
NEW DELHI: In a bid to check rejection of insurance claims on "flimsy" grounds, the Delhi Consumer Commission has penalised an official of the Life Insurance Corporation for wrongly rejecting a disabled man's claim and asked him to pay, from his salary, one-fourth of the Rs 1.25-lakh relief now awarded to the victim.
Commission president Justice J D Kapoor, while awarding a relief of Rs 1.25 lakh to accident victim R K Seth, said "We order that 25 per cent of the awarded amount shall be deducted from the salary of the officer, who was the final authority to take this decision, for such a lop-sided and totally unwarranted approach."
"Contract of insurance policy is contract of good faith and it was the respondent (LIC) which has indulged in malafide or bad faith while denying the claim of the complainant," Justice Kapoor said in a strong worded order.
The Commission's order came while deciding an appeal of Seth, a policy holder and a resident of Janakpuri here, who was rendered 60 per cent disabled in an accident in October 1994.
The LIC, however, chose to repudiate his claim of Rs one lakh contending he could not be held as permanently disabled as he could still earn from his business.
Expressing displeasure over the stand taken by the official responsible for rejection of Seth's claim, the Commission said the insurance company's argument was "nothing less than logic chopping".
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
