LIC ordered to pay Rs. 5 lakh with interest

By Punjabnewswire4u

CHANDIGARH, MARCH 5

The State Consumer Disputes Redressal Commission, Punjab has directed the Life Insurance Corporation of India to pay Rs. 5 lakh with interest to life assured’s widow.

            Disclosing this here today the spokesman of the Punjab government said that S. Satnam Singh had taken the insurance policy for an amount of Rs. 5 lakh from LIC but the life assured died in Amar Hospital, Patiala. The claim was lodged by the widow of life assured but LIC denied to pay the compensation to the party claiming that life assured committed suicide by hanging him and was declared dead at Amar Hospital.

The Commission has perused certificate issued by the Amar Hospital where the life assured was brought in unconscious state and life assured was declared dead but in the said certificate the cause of death was not mentioned by the duty doctor, who examined the life assured.

The spokesman further said that after hearing both the parties the Commission found negligence from the side of Life Insurance Corporation of India and directed to pay Rs. 5 lakh with interest @ 9% per annum from the date of repudiation of the claim and to pay Rs. 5000 as compensation as well as Rs. 1000 on account of litigation expenses.