Insurance company directed to pay compensation
Tuesday December 26 2006 15:40 IST
BELLARY: District Consumer Grievances Redressal Forum has ordered to The United India Insurance Company to pay Rs 1.01 lakh to K Shivaramappa a farmer, of Morpili village in Sadur for not shield the interest at right time.
According to the complaint lodged in the Forum, K Shivaramappa bought a tractor and get insurance from the company. But the tractor met with an accident on October 10, 2004.
When he requested the company to reimburse the money, the company refused to reimburse full amount. He claimed Rs 98,406, but the company agreed to reimburse only Rs 30,436.
The person who drove the vehicle at the time of accident does not have driving license and the tractor was initially taken for agricultural purpose. But when it met with an accident it was being used for commercial purpose. Hence the Company declined to pay the amount.
Later Shivaramappa lodged a complaint in the forum. Forum president Shekar Gowda Patil, members G Basavaraj and Annapoorna ordered the company to reimburse Rs 98,406 as vehicle repair charges with an annual interest of 9 percent.
The forum also ordered to pay Rs 2,000 in the form of loss, Rs 1,000 as the compensation for mental harassment and Rs 500 as complaint charges within a month.Courtesy_