Kupwara Consumer Commission Holds Oriental Insurance Liable for Denial of Livestock Claim; Awards Compensation to Policyholder
Pranav B Prem
The Kupwara District Consumer Disputes Redressal Commission has held Oriental Insurance Company Limited liable for deficiency in service for failing to settle a livestock insurance claim despite timely intimation and submission of all requisite documents. The Bench comprising Peerzada Qousar Hussain (President) and Ms. Nyla Yaseen (Member) directed the insurer to pay the insured amount along with compensation and litigation costs to the complainant.
The complainant, Mst. Saleema Begum, had purchased a CB Jerry cow financed through the Central Cooperative Bank, Kralpora, and insured it under a valid livestock insurance policy issued by Oriental Insurance. During the subsistence of the policy, the insured cow died on 29.03.2011, following which the complainant immediately informed both the insurer and the bank. A postmortem examination was conducted and submitted as required. However, despite repeated follow-ups and submission of all necessary documents, the insurance claim was not processed.
The complainant stated that the insurer’s non-payment created financial hardship, leading to the issuance of a repayment notice from the bank for the outstanding loan amount. With no response even after serving a legal notice, she approached the Consumer Commission seeking release of the insured amount along with appropriate compensation.
The insurance company argued that the complainant did not furnish timely intimation and complete documentation, and therefore the claim could not be settled. However, the Commission noted that the insurer failed to produce any evidence to substantiate its allegations of delay or missing papers. It recorded that the complainant consistently complied with every procedural requirement and that the insurer could not justify withholding the claim despite the surveyor's inspection and receipt of the postmortem report.
After examining the material on record, the Commission held that the insured cow had died during the validity of the policy and that the complainant had fulfilled all obligations under the terms of insurance. The insurer’s refusal to release the amount was therefore found to be a clear deficiency in service.
In conclusion, the Commission partly allowed the complaint and directed Oriental Insurance Company Limited to pay ₹40,000 as the insured amount, ₹30,000 as compensation for mental agony, and ₹10,000 as litigation expenses, along with 7% interest from the date of filing of the complaint until realization. The Commission directed that the entire awarded amount be released within 30 days, failing which statutory consequences would follow.
Cause Title: Mst. Saleema Begum vs. Oriental Insurance Company Ltd.
Case No: Consumer Complaint No.18/2017
Coram: Peerzada Qousar Hussain (President), Ms. Nyla Yaseen (Member)
