Indore (Madhya Pradesh): A life insurance company was directed to pay Rs 15 lakh to the family of a man who succumbed to Covid by the consumer court.
Rajesh Kataria had taken a home loan cum life insurance policy in 2017, and he used to pay 21,231 in instalments. He died on April 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 Kataria 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 multiple organ dysfunction syndrome 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 the Rs 14, 83,959. In addition, the company was directed to pay 1 lakh for the education of the two children and Rs 50,000 for mental agony.
