Insurance company asked to compensate woman

The National Consumer Disputes Redressal Commission (NCDRC) has directed New India Assurance Company Limited (NIACL) to pay Rs5 lakh compensation to a woman whose NRI son had died in Bahrain 11 years ago.

Rasheed, who died in April 1999 after he drowned while jet skiing off Hawar Island coast, was insured for Rs5 lakh under the Pravasi Suraksha Social Welfare Scheme.

This scheme was jointly formed by the Kerala government and NIAC to benefit NRIs from the state.

Rasheed’s mother RV Fathima Mohammed had appealed to the state consumer panel for compensation, but the panel rejected her plea on the ground that the particular insurance scheme excluded compensation for death while “skiing”.

NCDRC, however, directed NIACL to pay Fathima a compensation of Rs5 lakh along with 9% interest per annum from 1999 after Fathima’s lawyer said that the word “skiing” used in the particular clause of the insurance scheme was preceded by “winter sports” and followed by “ice- hockey”.

“In this case, however, what Rasheed did was jet skiing on water, which was clearly not intended to be covered by the exclusion clause,” her lawyer contended.

Agreeing with Fathima’s lawyer, NCDRC bench of justices RC Jain and Anupam Dasgupta ruled in her favour.

“Their [Kerala state consumer commission’s] conclusion was based on the meaning of the word skiing which they interpreted to include jet skiing,” it said and directed the insurance company to compensate Fathima.