The Permanent Lok Adalat in Coimbatore on Monday ordered an insurance firm to pay ₹10.29 lakh to a woman so that she can close a loan taken by her deceased husband in 2018.
Permanent Lok Adalat, Coimbatore President N. Umrani also ordered the insurance firm to pay ₹50,000 as compensation to the woman. Sources said Santhosh Kumar of Ottarpalayam, who works with Indian Oil Corporation, had taken a loan of Rs 10 lakh from a private bank in January 2018.
The loan had insurance coverage which was offered by the insurance wing of the same bank. Monthly payments against the loan were stopped after Santoshkumar’s death in November 2019. His wife Suganya approached the Permanent Lok Adalat after the bank allegedly sought closure of the loan by paying in full and the insurance firm did not process the insurance coverage.
The Permanent Lok Adalat heard the woman’s petition and its chairperson, Ms. Umrani, ordered the insurance firm to pay ₹10.29 lakh to Suganya within 15 days, so that she could close the loan taken by her husband.
If the insurance firm fails to pay the amount, 6% interest will be applicable on that amount which will be calculated from the date of death of Santoshkumar, the chairman ordered. Also Suganya should be given a compensation of ₹50,000.
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