NELLORE: District Consumer Disputes Redressal Forum in Nellore has directed an Insurance firm to pay Rs 14 lakh as the firm rejected a claim by the kin of a person who had taken a housing loan, after the loanee allegedly died following an accidental fall in the bathroom in 2018.
Repeating that the loanee died, during treatment for some other illness, the firm maintained that he was not eligible for benefits since the policy is only meant for death in an accident. However, the Consumer Forum pulled up the Insurance Company and ordered them to clear the housing loan dues of the victim, running to Rs 14 lakh.
As per the case filed in the Consumer Forum by Shaik Sirajunisa Begum, 39, she and her husband Shaik Shabbeer had taken a housing loan of Rs 16,00,000/- from Canfin Homes to construct a house at Buchireddypalem in August 2018. At the instance of Canfin Homes, they obtained a mandatory insurance policy for the loan amount from Canara HSBC Oriental Bank of Commerce Life Insurance Group on August 24, 2018.
The policy was taken in the name of Shaik Shabber, who is the co-borrower of the loan, and his wife Shaik Sirajunisa Begum was shown as the nominee. Shabber, who was hail and healthy then, suddenly slipped and fell down in the bathroom in his house and sustained a head injury on August 27, 2018.
Family members rushed him to the KIMS Hospital, Nellore, and the doctors at the hospital carried out a surgery in his head and later discharged him on September 4, 2019 after expressing doubts about his survival.
Shabbeer breathed his last on September 7. Within few days after the mishap, his wife Sirajunisa Begum gave a written intimation about the death to the insurance firm.
She requested them to adjust the insurance amount to the loan outstanding as per terms and conditions of the loan agreement.
To Sirajunisa’s surprise, Canfin Homes sent a notice to her on February 1, 2019, stating that her account became an NPA from January 31, while demanding to clear the arrears. The woman rushed to Canfin Homes and urged them once again to adjust the insurance amount towards the loan. Unmindful of her appeals, Canfin Homes once again issued notice on February 19, demanding her to pay Rs 16,29,944 within 60 days while threatening to take possession of the property under the loan account.
Left with no other alternative, Sirajunisa and her two daughters Shaik Sharuk, 19, and Shaik Sheema, 16, approached the Consumer Forum in Nellore for justice.
Home loans issuing company, insurance firm justify stand
Canfin Homes and the insurance firm justified their stand in rejecting the claim of the deceased’ kin, citing a condition where they are not liable to entertain a claim if the insured member dies within a period of 45 days from the date of commencement of policy, except a death arising out of an accident.
They said that the policy commencement was from August 23, 2018 and Shaik Shabeer died on September 7, within 15 days. They cited several cases to defend their stand.
However, Consumer Forum president Sk.Mohd. Ismail, and member K. Uma Maheswara Rao backed the claim of wife of the deceased Sirajunisa pointing to judgment in similar cases in various parts of the country.
The told Canfin Homes and the Canara HSBC Oriental Bank of Commerce Life Insurance Group to adjust the insurance amount towards the housing loan and pay the balance, if available, to Sirajunisa and her daughters.
Disposing the case few days ago, the Forum also directed Canfin Homes and the Insurance company to pay Rs 10,000 each towards damages or compensation to the complainants.
