Consumer Triumph: Insurance Giant Ordered to Pay for 'Unlawful' Claim Rejection

A consumer commission in Nagpur ordered Oriental Insurance to compensate the family of Vijay Dhoble, who died in a cycling accident, after rejecting their claim due to irrelevant documentation requests. The commission deemed the insurance company's demands unlawful, directing them to pay Rs 3 lakh with 9% interest.

The District Consumer Disputes Redressal Commission in Nagpur has instructed Oriental Insurance Company Limited to pay Rs 3 lakh to the family of Vijay Dhoble. Dhoble, who tragically passed away from injuries sustained in a cycling accident, had an insurance policy that was initially rejected by the company on grounds deemed 'unlawful' by the commission.

The insurance firm's demand for Dhoble's motorcycle driving licence and other documents, despite his involvement in a bicycle accident, prompted the commission's intervention. The commission highlighted these as inappropriate grounds for rejecting the claim, mandating compensation with an additional interest of 9%, underscoring a legal precedent in consumer protection.

Commission President Sachin Shimpi and Member B B Chaudhari delivered the ruling, reinforcing the importance of fair procedures in claim settlements. This decision reflects a significant win for consumer rights, as it deters companies from making unreasonable requests to evade legitimate policy obligations.

(With inputs from agencies.)