Indore: Insurance company directed to pay Rs 16L to family of Covid victim

Indore (Madhya Pradesh): A life insurance company was directed by the consumer court to pay Rs 16 lakh to the family of a man who succumbed to Covid.

Mohan Jatav had taken a home loan cum life insurance policy in 2016. He died on May 15, 2021, due to Covid. However, when his family asked the insurance company to settle the claim, they refused by saying that the cause of death did not satisfy the terms of the insurance policy.

The insurance company said that Jatav had died of Covid, while the policy stated that the borrower will get the money only if he dies due to a chronic disease including cancer, end-stage renal failure, multiple sclerosis, major organ transplant, heart valve replacement, coronary artery bypass graft, stroke, paralysis, and myocardial infarction.

However, as per medical records, death was due to cardiopulmonary arrest, acute respiratory distress syndrome, and organ dysfunction caused by Covid- 19.

The court said that the deceased should be paid the insurance amount as the definition of chronic disease was not defined in the contract.

The consumer court's order directed the insurance company to pay the borrower Rs 15,83,998. In addition, the company was directed to pay 1 lakh for the education of the girl child and Rs 50,000 for mental agony.