Panel orders Oriental Insurance Company to pay Rs2 lakh for ignoring policy claim

A consumer panel has pulled up the Oriental Insurance Company for ignoring a travel policy claim after the person died on a trip abroad.The Additional Mumbai Suburban Consumer Disputes Redressal Forum has ordered the insurance firm to pay the family Rs2,02,106 along with 10 per cent interest, Rs10,000 for the mental agony caused and Rs2,500 towards the cost of litigation.The case relates to a travel policy purchased by Gangaram Thackker, a resident of Mulund, for his wife Rashmi, who was going abroad to live with her son for some time."As my wife was going abroad to live with our son Arvind, and I wanted to ensure her safety I purchased a travel policy which provided a health cover of 1 lakh dollars. I accordingly paid the company a premium of Rs17,501," Thackker stated in his complaint to the forum.Rashmi left on her trip on March 22, 2009 and was supposed to stay with her son Arvind till September 17, 2009. But on March 29, while she was alone at home, Rashmi collapsed. She was found lying unconscious on the floor and taken to hospital, where she was declared dead."Arvind wrote to the insurance company, informing them about her death and requesting them to issue the insurance amount, which he would need to send his mother's body back to India, However, the firm turned a blind eye to his message," the complaint stated.He then contacted the firm and demanded they pay the insurance amount. But they repudiated the claim on the grounds that Rashmi died due to ailments like high blood pressure and cardiac problems, which she suffered for a long time, and that Gangaram did not inform the firm about this at the time of purchasing the policy.Somehow, Arvind managed to send his mother's body back to India, incurring an expenditure of more than Rs2 lakh.Aggrieved by this rejection, Gangaram approached the forum, which asked the insurance firm to reply to the complaint. The firm maintained its position and after going through the evidence the forum held it guilty of providing deficient services and ordered it to pay the amount.Tragic death abroadGangaram Thackker, a resident of Mulund, purchased a travel policy with a health cover for his wife Rashmi, who was going abroad to live with her son. While at her son's place, Rashmi collapsed and died. The son applied for the insurance amount, to meet the expenses to send her body back to India. But the firm rejected the claim saying she suffered ailments that were not disclosed when taking the policy