Cuttack: The Cuttack District Consumer Disputes Redressal Commission has directed an insurance company to pay Rs 56.9 lakh as compensation to the family of a policyholder who died after failing to pay a premium while bedridden due to illness. The commission also ordered the insurer to pay the amount, along with 6 per cent annual interest from the date of the policyholder’s death until payment, and Rs 10,000 towards litigation costs.
The commission said the order must be complied with within 30 days of receipt of the judgment. The ruling came on a complaint filed by Geetanjali Dash of Nuasahi in Cuttack’s Bidanasi area, represented by advocate Ramashish Acharya. The commission held that denial of the claim on the ground of non-payment of a single month’s premium, when the policyholder was incapacitated due to illness, amounted to a deficiency in service. Legal observers said the order is significant, as it is believed to be the first such ruling in Odisha granting compensation despite non-payment of a one-month insurance premium under similar circumstances.
According to case records, the applicant’s son, the late Satyam Kumar Das, purchased a life insurance policy September 18, 2022, and paid the monthly premiums regularly until March 14, 2023.
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On March 20, 2023, Das fell seriously ill and became bedridden. Despite undergoing treatment at several hospitals, his condition did not improve. He was later admitted to the ICU of a private hospital in Bhubaneswar, where he died May 10, 2023.
Following his death, the family applied to the insurance company for settlement of the policy claim. However, as Das was critically ill, he was unable to pay one month’s premium. Citing the non-payment, the insurance company rejected the claim. Challenging the decision, the family approached the Cuttack District Consumer Disputes Redressal Commission.
In its order, Commission President Sibananda Mohanty and member Subhalaxmi Tripathy observed that the insured was not in a condition to pay the premium due to serious illness and paralysis, and that the lapse was not wilful. The commission further noted that the insurance company failed to produce any evidence to show that it had issued a notice to the family regarding termination of the policy. In the interest of fairness and justice, it held that the family was entitled to receive the insurance amount.
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