Consumer body fines Insurance company for deficiency in service

Ahmedabad, Aug 30 (UNI) The Consumer Disputes Redressal Forum has asked the New India Assurance Company to pay about Rs 16,000 to a city-based couple towards claim (with penalty) against a domiciliary hospitalisation benefit policy.

The case was filed by Consumer Education and Research Society (CERS), along with one Jitendra Shah and his wife, Anjana. Anjana had sustained multiple injuries in an accident on March 9, 2004, and was admitted to a hospital. In response to the couple's reimbursement claim of Rs 10,718, New India Assurance sent a voucher for Rs 6717. They returned the voucher, justifying the claim of Rs 10,718, and approached CERS for help.

Holding New India Assurance responsible for deficiency in service, the Forum said it was ''shameful'' that the company had failed to sanction a negligible claim amount of Rs 10,718 against the policy.

The Forum observed that the complainants had proved their case by cogent evidence and established the company's deficiency in service.

Therefore, it directed the company to pay Anjana Rs 10,718, with nine per cent interest from March nine, 2004, Rs 2,000 towards mental agony, and Rs 2,000 towards costs incurred before September six.

It also ordered the company to pay Rs 5,000 to CERS towards expenses for legal services.

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