The Patna High Court has imposed a fine of Rs 50,000 on PNB MetLife India Life Insurance Company for pursuing a prolonged legal battle against a widow, Udha Devi, over her husband’s life insurance claim. The widow’s husband, Bhola Ray, died in a road accident in 2015, and she had been waiting for five years to receive a settlement of Rs 9.10 lakh. The insurance company rejected her claim, alleging that Ray had concealed a pre-existing tuberculosis (TB) condition, which was not covered. However, the court rejected this argument, citing a 2019 ruling by the District Consumer Disputes Redressal Forum (DCF) in Muzaffarpur, which had directed the insurer to pay Rs 18.2 lakh, including compensation.
Udha’s counsel, Nikhil Agrawal, argued that despite favorable rulings from the Bihar State Consumer Commission and the National Consumer Commission, the insurance company continued to delay payment through unnecessary legal battles. The Patna High Court has directed the company to pay the fine within four weeks.
This case highlights the need for insurance companies to act in a timely and transparent manner when settling claims. The prolonged legal battle pursued by PNB MetLife India Life Insurance Company has caused undue stress and financial hardship for the widow and her family. The court’s imposition of a fine is a significant step towards holding the insurance company accountable for its actions. This ruling also underscores the importance of upholding the judgments of consumer forums and ensuring that claimants receive their rightful compensation without further delay.
In this case, the court’s intervention has brought relief to the widow, and the fine imposed on the insurance company serves as a deterrent to other companies that may be tempted to engage in similar behavior. The incident serves as a reminder of the importance of ethical business practices and the need for insurance companies to prioritize fair treatment of claimants.