INTELLECTUALLY WEAK: Dismisses appeal against insurance firm for not reading risk policy
The National Consumer Dispute Redressal Commission (NCDRC) has, while dismissing an appeal said, it is the duty of an insured to read about the nature of an insurance policy and risk covered. It further stated that even while continuously renewing the policy if the insured chose not to examine his policy then he is guilty of contributory negligence.
The matter came to the NCDRC after the insured appealed an order of a state commission that had ruled in favour of the insurance company and a bank. Prakash Patel, a resident of Vadodara bought two insurance policies from the National India Insurance Company through Bank of India.
The first policy was brought for the period period April 13, 2008 to April 12, 2009and the same was being continued and renewed since 2005. This policy among other things covered the risk of storm, tempest, flood and inundation (STFI).
Patel had also through the bank bought another policy for the period from August 19, 2007 to August 18, 2008 which was being continued since year 2004. In this policy the risk of STFI was not covered and this policy was only for stock for Rs.16,20,000/-.
The bank paid the premium for the same and debited the same from Patel's account. On August 10, 2008 suffered damages due to heavy rains and a claim was made.
| NCDRC rules |
| The policy holder had appealed against an order of the state commission that had ruled in favour of the insurance company, bank. |
| It said the bank paid the premium as per the customer’s instruction and also gave him the terms and conditions. |
The insurance company assessed the net loss at Rs.1,21,544. The insured challenged the same in state commission.
The counsel for insured argued that if not the insurance company, then the bank should make good his loss as he was not aware of the discount obtained by the bank in the premium for relinquishing the risk of STFI. He said he had not instructed the bank to go for a cover that did not cover STFI.
The NCDRC while dismissing the appeal said that the bank paid the premium as per the customers instruction and also gave him the terms and conditions and exclusions. It said the exclusion of STFI got the insured a discount in premium but he never raised an objection about the policy for 5 years.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "insurance policy")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}