The Namakkal District Consumer Disputes Redressal Commission (DCDRC) directed an insurance company to pay ₹5 lakh in compensation on Tuesday.
In October 2020, Kumar (56), a resident of Erumapatti who owned a truck, passed away in an accident. Kumar was a member of the Namakkal District Lorry Owners Association, which had taken out group insurance for its members. Following his death, Kumar’s wife, Devaki, son, Amarnath, and daughter, Gokila, submitted a petition to the insurance company, requesting a payout of ₹10 lakh as per the terms of the policy. The company rejected the family’s application stating that the deceased had a license only to drive heavy vehicles. The family filed a case at Namakkal DCDRC, demanding the company pay the insurance amount.
The company argued that the policy issued to the lorry owners’ association contained a clause that it would not cover the deaths of its members if they violated laws.
Hearing the arguments, DCDRC Commissioner V. Ramaraj directed the insurance company to pay ₹5 lakh to the deceased family members on Tuesday.
According to the order issued by the commissioner, it has been established that Kumar was driving his bike without a license or helmet. Although this was a violation, the policy conditions state that the sum assured will only be withheld in case of death due to a violation of the law with the intent to commit a crime.
Even though the insurance amount is ₹10 lakh, the deceased person was found to have violated the rules and was partially responsible for the incident. As a result, the insurance company is required to pay only ₹5 lakh to Kumar’s family in four weeks, failing which, the amount will be paid with 9% interest per year, calculating from October 2020, the order said.