Thoothukudi consumer panel directs firm to pay Rs 1.10 lakh compensation over insurance lapse

MADURAI: Thoothukudi District Consumer Disputes Redressal Commission directed a private firm to pay a compensation of Rs 1.10 lakh to a complainant due to deficiency in service, sources said on Sunday.

Earlier, the complainant Jeyakumar of Eral in Thoothukudi district, took a loan from a private firm in Chennai and paid money for life insurance and health insurance policy.

Despite having paid money towards insurance, the policy was not issued to the complainant. Meanwhile, Jeyakumar died of illness. Since the policy, the document required for the death claim, was not issued by the firm, insurance benefits could not be availed.

Hence, Sudha, wife of Jeyakumar, forwarded a petition to the Superintendent of Police seeking action.

As there is no remedy, the frustrated Sudha took the issue to the legal body, and subsequently, a legal notice was issued seeking action, and even then, there was no response. Sudha then filed a lawsuit against the firm.

After examining, the President of the Commission Thiruneela Prasad and its Member A Sankar directed the private firm to waive off the loan obtained and pay Rs 1 lakh as compensation to the complainant for causing him mental agony and deficiency in service, along with Rs 10,000 towards the cost of expenses. The compensation must be paid within a period of two months, sources said.