LIC pulled up for denying constable disability claimJanuary 30th, 2009 - 9:23 pm ICT by IANS
New Delhi, Jan 30 (IANS) A consumer court here has pulled up the Life Insurance Corporation of India (LIC) for rejecting the claim of a disabled applicant and warned the insurance sector not to reject rightful claims of consumers on flimsy grounds. Delhi Police constable Neeraj Kumar, having two LIC policies covering permanent disability benefits to the tune of Rs.150,000, suffered an electric shock resulting in amputation of his right arm.
Despite doctors having assessed permanent disability to the extent of 69 per cent, the LIC rejected Kumar’s compensation claim on the ground that he was still capable of earning or obtaining wages as he was allowed to continue in his job on compassionate grounds.
Kumar then approached the Delhi State Consumer Disputes Redressal Commission.
Ruling on his case, the commission headed by Justice J.D.Kapoor observed that had the consumer now applied for the post of constable, he would not have got the job. Therefore to reject such a claim on such a premise was nothing but “logic chopping, oppressive and malafide interpretation of beneficial contract,” the commission observed.
“Merely because a person with permanent and total disability continues to be employed on compassionate basis does not mean that he has forfeited the benefit of permanent disability arising from the insurance policy,” Kapoor added.
Justice Kapoor also asked the insurance sector not to adopt such an approach and be consumer friendly. The consumer should not be made to run from pillar to post or else they should be ready for the consequence of recovery of compensation amount from the salary of the officials, he said.