Court asks insurance companies to be consumer friendly

November 28th, 2008 - 8:59 pm ICT by IANS  

New Delhi, Nov 28 (IANS) A consumer court Friday reprimanded insurance companies for rejecting claims on flimsy grounds and asked them to be consumer friendly.The Delhi State Consumer Disputes Redressal Commission, presided over by Justice J.D. Kapoor, asked insurance companies not to adopt unfair practices in rejecting insurance claims.

Kapoor directed the United India Insurance Company to pay Rs.300,000 to T.K. Mirza, a petitioner whose burglary claim was rejected the company.

The company closed the case treating a maid servant, who had allegedly committed the theft, as a family member.

Mirza’s wife had gone abroad for about six months in 2003 and when she returned she found some of her valuables were missing. She lodged an FIR and filed a claim with the insurance company.

A district consumer court in 2006 asked the insurance company to pay Rs.300,000 to the claimant.

But the company appealed before the state consumer court that upheld the decision of the district forum.

Justice Kapoor said the maid servant cannot be treated as a family member. The policy document includes only the insured, his wife and children as family members and therefore rejection of the claim was unjustified.

Kapoor asked insurance sector to be consumer friendly.

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