HC notice to ICICI Lombard General Insurance, IRDA

Lucknow, May 30 (UNI) Leading private insurer ICICI Lombard General Insurance Company has been sent notice by the Allahabad High Court on a PIL alleging rejection of farmers' claim on ''flimsy grounds''.

Besides, the Insurance Regulatory and Development Authority (IRDA), the Uttar Pradesh government and the Insurance Ombudsman have also been directed by the HC's Lucknow Bench to file counter affidavits in the case.

The PIL, jointly filed by NGO Bharat Jyoti and the widow of a farmer, informed the HC that the UP government had taken a group personal accident policy from ICICI Lombard to cover 2.5 crore farmers in the state.

However, the insurer rejected even those claims where all formalities as required under the policy had been fulfilled, the petition alleged.

According to the PIL, a total of 4,631 claims had been recommended by the respective District Magistrates, but only 1,422 claims were honoured.

The petitioners said most claims were rejected on ''flimsy grounds'' such as in case of a train accident, the statement of the train driver was demanded. Since, it could not be provided despite autopsy report and FIR, the claim was rejected.

Hearing the petition on Friday, a division bench comprising Justices S N Srivastava and S S Chauhan directed the respondents to file counter affidavits.

The PIL has also challenged the terms and conditions of the farmers' policy, such as mandatory requirement of post-mortem in all cases and Forensic Science Laboratory Report (FSL) in case of death due to drowning and poisoning.

The petitioners' counsel argued that ''If the cause of death can be ascertained by the doctor conducting the post-mortem, then the FSL is not required as the latter is beyond the means of the claimant''.

Earlier, the NGO had taken up the matter with IRDA, but the authority failed to take action in the matter even after the lapse of more than seven months, Bharat Jyoti counsel Dhruv Kumar said today.

Meanwhile, ICICI Lombard Vice-President T R Sharma declined to comment and told UNI here the company was yet to receive the HC notice.

The next hearing in the case is likely in the first week of July, when the HC reopens after summer vacation.

UNI