Forum directs insurance firm to pay in full

NASHIK: The District Consumers Disputes Redressal Forum has ordered an insurance company to settle the claims of two consumers in full for unlawfully ‘forcing’ a one-time settlement (OTS) on them.

In its March 5 judgement in two separate complaints filed by Harsul traders, the forum headed by its president Milind Sonawane pointed out that the claim was forcibly settled in only half the amount, despite all the factors indicating that there was a complete loss as claimed by the complainants. Hence, the forum ordered the company to settle the claims in full along with a 10 percent interest on the balance amount from Feb 15, 2016, till date with an additional Rs 10,000 for mental harassment.

The consumers — Shaikh Atik Haji Abdul Samad and Shaikh Shehbad Jahi Abdul Samad — had insured their garment shops and goods with the New India Assurance Company in their shop for Rs 15 lakh each. On July 14, 2015, both the shops were totally damaged in the riots that broke out in the village. A survey of the damages was done after riots, in which the police estimated 100 percent loss, while the insurance company put up losses at around 45 percent only.

As part of the OTS, the insurance company offered Rs 6.67 lakh to Shaikh Atik and Rs 6.08 lakh to Shaikh Shehbad. Both the traders accepted the OTS and challenged the same in consumer forum on July 28, 2017.

FG Inamdar, the counsel, for the two traders, said, “The company has thrown to the wind the recommendations by the police, that there was a hundred percent loss of the clients. Instead, the surveyor surprisingly has cut down the losses to just 45 percent.”

The insurance firm counsel SC Abhyankar stated that the losses were exaggerated by the consumers. The income tax returns and other documents reveal that the losses were calculated by the company on a fair side without any injustice upon the consumers. The forum, however, ruled the decision in the favour of consumers after checking the relevant documents and ordered the compensation to the insurance company.

Source: The Times of India