Consumer panel directs bank, insurer to pay Rs 30 lakh claim to Mumbai cop

A consumer commission in Mumbai has directed the Axis Bank and the New India Assurance company to pay an insurance claim of Rs 30 lakh along with interest to a policeman who suffered injuries with permanent disabilities after an accident in 2017 reported news agency PTIThe District Consumer Disputes Redressal Commission South Mumbai in an order passed on March 11 noted that as per the facts the bank and the insurance company were in agreement for providing insurance cover to police personnel as per the Memorandum of Understanding MoU between the bank and the Mumbai Police reported PTIThe policemans insurance claim has been arbitrarily rejectedrepudiated it observedIt is based on wrong interpretation and hence the order of repudiation is found to be unsustainable under the law the commission said in its order a copy of which was made available on Sunday reported PTIThe claimant Rajesh Pawar was posted at the Kasturba Marg police station in suburban Borivali designation not mentioned in the order at the time of filing the complaint in December 2020 reported PTIHe claimed that as per an MoU signed between the bank and the police department in 2015 when the personnel open account in the bank they would be given a Power Salute Debit cum ATM Card with a personal accident insurance of Rs 10 lakh and air accident cover of Rs 25 lakh reported PTIHence he had opened an account with the banks branch in Dadar eastThe complainant met with an accident in October 2017 and said he was hospitalised for a long period of time reported PTIHe suffered huge bodily injuries with permanent disabilities which kept him away from work for almost one year the complainant saidAs per the certificate issued by the government medical authority the policeman is 71 per cent handicap reported PTIAfter recovering from the injuries the complainant claimed insurance from the bank by submitting necessary documents in April 2019 reported PTIThe insurance company rejected the claim on the grounds of delayed submission of documents and that partial disability was not covered in the policy termsThe bank in a written response contended the complainant had raised a false claim reported PTIThe policeman receives his salary every month without interruption Thus there is no loss of employment nor any mental or physical harassment the bank claimed reported PTIIt also said that partial disability is not covered in the scheme reported PTIThe claim was required to be submitted within 90 days from the date of incidence it said adding the banks role is only of a corporate agent and the actual insurance to be issued by the insurance company reported PTIThe insurance firm also opposed the claim saying that to claim the insurance the insured person shall immediately give a notice with full particulars as far as possible reported PTIIn the present case the complainant intimated after a gap of 1 year and 7 months the insurer saidFurther the insurance company submitted it was not aware what transpired between the bank and Mumbai Police reported PTIThe insurance company also said that as it has not entered into any agreement with the Mumbai Police the agreement between the bank and the Mumbai Police is not binding upon itThe commission after considering all the submissions said the facts reveal that both the opposite parties were in agreement for providing insurance cover to police personnel as per the MoU between the bank and the Mumbai Police reported PTIThus from the very conduct of the Respondent it is found that to avoid the liability of insurance the claim has been arbitrarily rejectedrepudiated the commission said reported PTIThus the very order of repudiation of claim being arbitrary is based on wrong interpretation and hence found to be unsustainable under the law it added reported PTIThe complainant is justified to claim of Rs 30 lakh with an interest rate of 6 per cent from the date of repudiation June 5 2019 till its actual realisation the commission said reported PTIIt directed the bank and the insurance firm to issue the claim jointly and severallyThe commission also directed them to pay Rs 250 lakh to the policeman towards compensation for mental agony and Rs 25000 towards the litigation costs reported PTIWith inputs from PTI