Consumer forum pulls up ICICI Lombard General Insurance Company for failing to reviving cover

Nashik: The Nashik district consumer forum has pulled up an insurance firm for its failure to extend the promised cover despite fulfillment of all formalities and ordered it to compensate the consumers Rs 15,000 for harassment, both physical and mental.

“The failure of the insurance company in extending the insurance cover despite completing the formalities by the consumers amounts to deficiency in service. Though there was no claim filed by the consumers and they were hale and hearty, the company has to compensate for the mental harassment faced by the consumers when they were abroad,” read a February 2 judgment delivered by a three-member forum.

Pious David (72) and Thalema Pious (68) residents of Nashik Road had been to Australia from November 3, 2017 on a tourist visa. Both had paid premiums of Rs 5,169 and Rs 5,789 to ICICI Lombard insurance company for a health cover of USD 50,000 during their stay till December 15, 2017. According to the consumers, they had chosen to take the insurance cover from the company on condition if they were able to extend the same after completing the formalities.

“The clients paid the required premiums and went to Australia on tourist visa. For some reasons their stay abroad got extended and hence got in touch with the insurer requesting to extend the cover as well. They even completed all the formalities but the company simply refused extension for no valid reason,” MK Vaishnav, counsel for the applicants, said in the case registered with the forum on March 31, 2018.

“The complainants witnessed an accident in Australia where there was a huge casualty and was disturbed with the thought how could they deal with such medical injury if they were part of the mishap,” Vaishnav added. In its reply the company through its counsel PP Pawar claimed that there was no medical claim filed by the consumers with it. Besides it was not biding upon the company to extend the cover. “Whatever has been said in the complaint is fictitious and hence the case may be dismissed,” Pawar had said.

“It is observed that the company has in its terms and condition stipulated the process for extension of cover which was followed by the complainant from abroad. The company by turning down the request without any valid reason has caused mental harassment to the consumers,” the forum said asking the company to pay Rs 10,000 as compensation for mental harassment and Rs 5,000 for physical harassment.

Source: The Times of India