The company has also been directed to pay up for the cost of litigation, amounting Rs 1000. Late Bajrang Lal Sharma bought a insurance from ‘Child Welfare Fund Scheme’ which was promulgated by Ilam System Ltd (Kolkata) and the appellant United India Insurance Company (Bilaspur).
Bajrang Lal Sharma had also deposited the premium amount for the insurance.
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The deceased was insured for Rs 5 lakh against accidental death and under the terms of the policy, in the event of accidental death of the insured, the sum assured was payable to the nominees. After his death, the Sharma’s wife reported her husband’s death to the insurance company and the police. Claim was also preferred for the sum assured but when the same was not settled in reasonable time, the consumer complaint was filed before District Forum by the Insurance Company itself.
The insurance company in the written version asserted that the insurance certificate which was presented by the beneficiary in the consumer complaint was forged. The respondent was authorized to work only as per instructions of the appellant insurance company, but it was found that some forged certificates were also issued by the Company therefore inquiry was conducted by Central Bureau of Investigation (CBI). In connection with that inquiry documents of the insurance company were seized by the CBI. Other allegations of the complainants were also denied.
Earlier the district Forum observed that it was not competent to adjudicate those facts under summary jurisdiction available to it, the complainant was directed to file his claim before some other Forum or to wait for completion of CBI inquiry. After completion of such enquiry, the complainant can file same complaint before the same forum. This order was challenged by the complainant before the State Commission.
Before the commission, it was shown that the CBI has completed its investigation and charge sheet has been filed against Arun Kumar Verma, Divisional Manager of the Insurance Company, Kaushik Banerjee and Sudipta Sen, General Manager and the director of Ilam Systems.
After examining the case, state commission said that the appellant company cannot escape from its liability to pay sum assured to the nominees of the deceased Bajrang Lal Sharma. The Court ordered to pay the amount to the nominees and also Rs one thousand as case expenses.
