New India Assurance found guilty of negligence

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Ahmedabad, Oct 6 (UNI) The Consumer Disputes Redressal Forum today directed the New India Assurance Company Limited to pay Rs three lakh to a complainant after it was found guilty of negligence and deficiency in service.

The Company has been asked to pay Rs three lakh to the complainant Dinesh M Kathrani, whose claim was rejected by the Company, citing that Janta Personal Accident Insurance policy, which was taken by Dinesh's brother Bharat on January 29, 1999 for 15 years, was withdrawn by the Company in May 1999. The Company said it had notified the same in national and regional newspapers.

According to the complaint, Bharat, who died following a accident on July 15, 2001, had paid a premium of Rs 44,072 for the policy, which assured the nominee a sum of Rs three lakh in case of accidental death of the insured person.

The Forum found that the Company, under Clause 5 of the policy, relating to discontinuance of the policy and the procedure to be followed for it, had failed to inform Bharat about the same in person and also return the premium, thus implying that the policy still continued.

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