Tata AIG General Insurance Company told to pay ₹1.27 lakh compensation to accident victim

A district consumer disputes redressal forum here has directed the Tata AIG General Insurance Company to compensate a complainant by paying over ₹1.27 lakh after the insurance firm repudiated a claim on the grounds that the driver of the vehicle which met with an accident was under the influence of alcohol.

While taking note of the medical slip provided by the hospital where the driver was treated, the consumer panel observed that a claim cannot be repudiated based on a report which states that “smell of alcohol was found.”

“The question arises as to whether mere smell of alcohol from the mouth of the driver of the insured is enough to reject the claim. The answer is in the negative. In fact, a person can be understood to have been under the influence of liquor if a specific amount of alcohol is found in his blood at the time of accident making him unfit to be rational,” the Bench observed while adding that the medical slip only mentioned “the smell of alcohol.”

The directions came when the consumer panel was hearing a complaint which challenged the repudiation of the claim by the insurance firm. The firm had contended that according to the terms mentioned in the policy which entailed that the company is not liable to make any payment if the driver is under the influence of intoxicating liquor or drugs.

While directing the insurance firm to compensate the complainant, consumer forum further observed, “There is also no evidence that the separate conditions were ever supplied to the insured either at the time of inception of the policy or at any time thereafter.”

Source: The Hindu