Ref. : ER|press|’06|newind.33|dG
The Consumer Disputes Redressal Forum, Ahmedabad City, has partly
allowed a complaint filed by Consumer Education and Research Society
(CERS), Ahmedabad, and Mrs. Neha M. Dave, the widow of Malay A. Dave,
and held New India Assurance Co. Ltd., Mumbai Divisional Office, liable
for deficiency in service and violation of its own policy conditions.
The Forum has ordered the company to pay Nehaben Rs. 10 lakh with
nine per cent interest from 21 July 2004 till realisation, besides
other benefits as per the conditions under the Janta Personal Accident
Insurance Policy of her late husband. It has also ordered New India
to pay Nehaben Rs. 25,000/- towards mental agony, besides Rs. 10,000/-
each towards cost to her and CERS.
The Forum directed New India to recover the cost of Rs. 10,000/-,
payable to Nehaben, from the salary of the Divisional Manager who
had written to her on 21 July 2004, and to submit a copy of the deducted
salary certificate to the Forum soon. This sets a precedent to make
persons in authority accountable.
In the letter of 21 July 2004, New India had informed Nehaben that
the company had cancelled the Janta Personal Accident Policy on 1
May 1999 and, had issued a public notice in various newspapers in
Mumbai as well as in Gujarat in Hindi, English, Gujarati and Marathi
on 12 and 13 December 2002 to inform the insured. The letter to Nehaben
had further added that in her case, her husband had died on 22 September
2003, i.e. after the policy had been cancelled. Hence the company
had not considered her claim under the Janta Personal Accident Policy.
The late Malay A. Dave had taken the policy from New India covering
15 years from 11 November 1998 to 10 November 2013 and the sum assured
was Rs. 10 lakh, with his wife as the assignee. He had paid Rs. 4015/-
as the premium and had been issued a receipt.
The policyholder met with an accident in Surat on 15 September 2003
and died at a hospital there a week later. His widow filed her claims
with New India on 15 April 2004.
New India, as the Forum put it, “seems to have addressed a letter
dated 21 July 2004” to Nehaben, but she received it on 8 October
2004, two and a half months later or, in other words, almost six months
after filing her claims.
Nehaben rejected the company’s contention in the letter on the
grounds that, among other things, it had not given any written notice
to policyholders about the cancellation of the policy and not returned
the pro rata amount of premium as per the conditions of the policy
clauses. She repeated her request for settling her claims.
Nehaben approached CERS on 31 January 2005. CERS sent a legal notice
to New India on 10 March 2005. When the company did not reply even
to the legal notice, CERS, along with Nehaben, filed a complaint with
the Forum.
In response, New India appeared and filed its written statements.
CERS, however, refuted it and filed a rejoinder.
The Forum, after hearing both sides, observed that the public notice
had been issued three years after the cancellation of the Janta Personal
Accident Insurance Policy and neither the late Dave nor his wife was
properly informed of the cancellation as per the provisions of the
policy itself. Besides, the premium collected against the policy had
not been refunded pro rata. Therefore, New India was duty bound to
pay the amount of the claim to Nehaben, the Forum added.
The Forum comprised Mr. U. M. Raval, President, and Mr. Bharatbhai
H. Joshi, Member. Mr. K. H. Khatwani, Advocate, pleaded for CERS and
Nehaben, and Mr. H. G. Mazmudar, Advocate, for New India Assurance
Co. Ltd.
Date : 15/09/2006
Pritee Shah
Place: Ahmedabad
Editor
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