Insurance firm to pay Rs70k for rejecting South Mumbai resident's claim

The District Consumer Forum has directed an insurance company to pay Rs 60,600 along with interest at the rate of 9 per cent per annum from December 2011, to a South Mumbai resident, who had taken a travel insurance policy in 2009 and his belongings were stolen in Geneva.

In its order of April 11, the forum directed ICICI Lombard General Insurance Company Limited to also pay a compensation of Rs 10,000 to Mahendra Shedha for mental agony and Rs5,000 towards litigation cost.

NGO Consumer Welfare Association had taken up the case for Shedha. It said Shedha lost several documents, including a printout of the insurance policy in Geneva. While he lodged a police complaint, he could not inform ICICI Lombard. When he raised a claim with the company on his return to India, the fir rejected it. Shedha moved the forum in 2011.

The company said the loss was not substantial and the theft did not affect Shedha's travel plan. After going through the evidence and hearing both parties, the forum ruled in favour of Shedha.