The case revolves around Indane, an agency, and their customers, who purchased insurance policies from United India Insurance Company and Oriental Insurance Company. The insured parties failed to notify the insurance companies of specific incidents within the prescribed time frame, which the companies used to exonerate themselves from liability. The district commission approved this decision, prompting Indane and the agency to file appeal petitions.
The appeals were heard by the SCDRC bench, which identified key issues, including the agency’s claim that the regulator was not defective and the insurance companies’ refusal to honor the claim citing “technical reasons.” The SCDRC found a deficiency in service on the part of the insurance companies, who failed to provide a claim even after being made parties to the case before the district commission.
In light of these findings, the SCDRC modified the district commission’s order, ruling that the complainant, whose wife had passed away from cancer, was entitled to compensation of Rs 4 lakh (approximately $55,000). The commission ordered Indane, the agency, and the insurance companies to jointly provide this compensation.
The SCDRC bench, comprising Justice B. Sudheendra Kumar, Ajith Kumar D, and Radhakrishnan K. R, demonstrated a nuanced understanding of the case, recognizing the specific circumstances that led to the insurance companies’ decision. Despite the delays in notification, the SCDRC acknowledged the insured parties’ entitlement to compensation, ultimately finding that the insurance companies had failed to provide adequate service. By ordering the three parties to jointly provide compensation, the SCDRC aimed to provide a satisfying resolution for the complainant, while also reprimanding the insurance companies for their handling of the case.