National Insurance Company penalised for rejecting insurance claim

The Mumbai suburban district's additional consumer forum has penalised National Insurance Company for repudiating the claim of Lata Thakkar, a Vile Parle-based consumer.

The forum directed the insurer to pay Rs1.65 lakh to Thakkar, along with an interest of 10 per cent on the amount from March 2008. The company had rejected her claim on the damage caused to her bungalow by the heavy showers that hit the city on June 30, 2007. National Insurance was also directed to to pay an additional Rs5,000 towards the complainant's litigation cost. 

Thakkar had bought a standard fire and special perils policy cover of Rs1 crore from the company in March 2007. According to the policy terms, it was valid from March 13, 2007, to March 12, 2008. "Four months after Thakkar bought the policy, her bungalow got damaged in the rains. Two days later, she intimated the insurance firm of the damage, after which its surveyors visited the site and filed a report on the losses," the forum's order copy says. After the surveyor completed his work, Thakkar started repairing her bungalow. She made a claim on the total repair expenses, amounting to Rs1,64,867, and provided the firm with the true copies of the bills.

However, the insurance company refused to acknowledge her submission and wrote back saying it could not wait to receive the necessary documents, and closed the case, assuming she was not interested in the claim. Aggrieved by the firm's attitude, Thakkar approached the forum. The forum asked the firm to file its reply, to which it maintained that Thakkar's complaint was false and frivolous. While the firm claimed that Thakkar did not submit the insurance money claim form, and it was of the view that she was not interested in the claim, the forum found that the firm was at fault and penalised it.