In a startling revelation, HDFC Life Insurance finds itself in hot water as the district consumer disputes redressal commission orders a compensation of ₹31.62 lakh with interest, coupled with an additional ₹25,000 for mental anguish, owed to a grieving widow.
The case unfolds in Coimbatore, where G Surendrakumar, a resident of Sundrapuram, succumbed to a cardiac ailment just five months after securing a business loan of ₹31.62 lakh from HDB Financial Services.
Denied Claim Unraveled
Surendrakumar’s foresight led him to obtain insurance coverage for the loan, facilitated through an arrangement between HDB Financial Services and HDFC Life Insurance.
The policy, issued under the Group Credit Protect Plus plan on March 6, 2019, took an unfortunate turn when Surendrakumar passed away on July 29, 2019. Following his demise, his widow, S Rajeshwari, filed a legitimate insurance claim.
Shockingly, the insurance firm rejected Rajeshwari’s claim, attributing it to her late husband’s pre-existing cardiac condition. Unfazed, she promptly closed the loan on April 4, 2022, and decided to take her battle to the district consumer disputes redressal commission.
Commission’s Verdict
Commission president R Thangavel, along with members P Marimuthu and G Suguna, rendered a verdict favoring Rajeshwari. The commission deemed the rejection of the claim by the insurance firm as unjustifiable, citing the husband’s passing within a short period from policy commencement.
Notably, the insurance company’s reasoning hinged on the deceased’s previous cardiac history, a contention deemed unsustainable by the commission.
In response, the commission ordered HDFC Life Insurance to settle the claim amounting to ₹31.62 lakh with a 6% interest rate from the date of claim repudiation. Furthermore, recognizing the mental distress endured by Rajeshwari, the commission directed the insurance firm to provide ₹25,000 in compensation. An additional ₹5,000 was allotted to cover the legal proceedings’ expenses.
Conclusion
This case serves as a poignant reminder of the struggles faced by grieving families when insurance companies deny rightful claims. In this instance, justice prevailed, emphasizing the importance of thorough investigation and fairness in claim settlements.
Conclusion
HDFC Life Insurance’s refusal to honor the claim of a grieving widow not only resulted in financial compensation but also sent a resounding message about accountability and empathy in the insurance industry.
