Mumbai: Observing that New India Assurance Co had arbitrarily repudiated the insurance claim payable under a policy and rendered deficiency in service, the Maharashtra Consumer Commission has asked the company to pay Rs49 lakh to a former Air India flight engineer by 25th August.The amount includes Rs20 lakh policy amount, Rs28.5 lakh interest on the original claim at the rate of 15% per annum from February 2003 when the claim was repudiated, Rs50,000 compensation for mental agony and Rs25,000 as costs of the litigation, a three-member bench ruled recently.If the amount is not paid within the specified period, penal interest at the rate of 6% will be payable by the opponent insurance company till the actual payment is made, Commission president SB Mhase and members SR Khanzode and Narendra Kawde said.
“The complainant deserves to be suitably compensated on account of inordinate delay and for the mental agony together with cost of litigation,” said the bench.Complainant D Janardanan was employed with Air India as flight engineer holding a valid licence effective from 8 January 1976. The licence was renewed from time to time. He was also a member of Indian Flight Engineers’ Association (IFEA), which is affiliated to International Federation of Airline Pilots’ Association (IFEA), and International Transport Workers’ Federation (ITE).
Janardanan subscribed through IFEA to Loss of Flying Licence Insurance policy initially from 8 September 1999 to 7 September 2000, for Rs10 lakh. The policy was renewed from 29 September 2000 to 28 September 2001 and enhanced with sum assured of Rs20 lakh by maintaining all other terms and conditions in the earlier Insurance policy.