Indore (Madhya Pradesh): A life insurance company was directed by the consumer court to pay Rs 20 lakh to the family of a man who succumbed to Covid.
Ravindra Pathak had taken a home loan cum life insurance policy in 2015, and he used to pay 22,491 in instalments. He died on May 14, 2021, due to Covid.
However, when his family asked the insurance company to settle the claim, they refused claiming that the reason for death does not satisfy the terms of the insurance policy.
Pathak 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, coronary artery bypass graft, stroke, paralysis, and myocardial infarction.
However, as per medical records, multiple organ dysfunction syndrome was caused by Covid. The court said that the deceased should be paid the insurance. The consumer court's order directed the insurance company to pay Rs 19, 92,959 and an additional Rs 30,000 for mental agony within one month of the judgment
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