ORIENTAL INSURANCE COMPANY LIMITED Vs. ADDITIONAL SECRETARY CHHATTISGARH

JUDGEMENT

(1.) This revision petition has been filed against concurrent orders of the District Consumer Forum, Raipur and the Chhatisgarh State Consumer Disputes Redressal Commission. The Complainant, Chhatisgarh State Power Holding Co.,had obtained a Group Personal Safety Insurance Policy for its employees as a measure of protecting and safeguarding their welfare. The matter in the present proceedings arose from the death of an employee, Kaushal Prasad Sahu in a road accident on 7.6.2005.

(2.) The case of the Complainant before the District Forum was that the claim form under the policy was submitted by the concerned Executive Engineer of the Board along with copies of the FIR lodged with the policy, post-mortem report, death certificate and the service certificate of the deceased employee. OP/Oriental Insurance Company repudiated the claim on 1.3.2007. In the written response of OP/Oriental Insurance Company, it was explained that under the terms of the policy, notice of death of the employee was required to be given within one calendar month of the death. As the claim was repudiated on account of delay in reporting the death of the employee, it was argued before the District Forum that the claim was required to made within a period 14 days and was rejected for non-compliance of this condition. The District Forum allowed the claim with compensation of Rs.5,000/-.

(3.) In the appeal before the State Commission, it was argued on behalf of the Oriental Insurance Company that both parties are bound by the terms of the agreement under which the claim was to be filed within 14 days. The State Commission observed that