The family of Basavaraj Muthathi, a 34-year-old lineman who was electrocuted while working on a power line in Tumakuru, has finally received relief from the consumer court after a four-year battle. The II Additional District Consumer Disputes Redressal Commission in Bengaluru has directed New India Assurance Company Ltd to release Rs 10 lakh with 8% interest to Basavaraj’s widow, Rekha, and their two young daughters. The court also awarded Rs 10,000 towards mental agony and litigation costs.
Basavaraj was covered under a group personal accident insurance policy issued by New India Assurance to his employer, Bescom, which provided a sum assured of Rs 10 lakh per employee. After his death on May 11, 2021, his widow submitted a claim form through Bescom, but the insurer failed to process it despite repeated reminders. Rekha was forced to work as a daily-wage labourer to make ends meet and eventually approached the consumer commission in December 2023.
The insurer, New India Assurance, claimed that Basavaraj’s name was not on the insured list submitted by Bescom, and that policy conditions had not been complied with. However, the court found that the insurer’s own records contradicted its defence, as Basavaraj’s name was clearly listed as an insured employee with a sum insured of Rs 10 lakh. The commission concluded that all required documents had been provided and that no other claimant had come forward.
The court’s order stated that the insurer had falsely contended that Basavaraj’s name was not on the list of insured employees. The commission held the insurer guilty of deficiency in service for wrongfully denying the family’s claim. The order brings relief to Rekha and her daughters, who have been struggling to make ends meet since Basavaraj’s death. The case highlights the importance of consumer courts in providing justice to individuals who have been wronged by insurance companies and other service providers.