On May 5, 2021, while undergoing treatment at Virinchi Hospital, Suddula died due to cardiac arrest triggered by viral pneumonia and severe ARDS.
Hyderabad: In a major relief to a bereaved family, the Telangana State Consumer Disputes Redressal Commission has directed Tata AIG Insurance Company to settle a housing loan insurance claim of Rs 1.34 crore in favour of PNB Housing Finance Limited, following the death of the loan holder. The Commission passed the order while hearing an appeal filed by Tata AIG against the earlier judgment of the Hyderabad District Consumer Disputes Redressal Commission.
The complainant, Suddala Sujatha, stated that her husband, the late Doddana Gowd Suddula, had taken a housing loan of Rs 1.39 crore from PNB Housing Finance for a property in Moosarambagh, Malakpet. As part of the loan process, he was insured by Tata AIG under a policy covering Rs 1.34 crore for the period between March 12, 2021, and March 11, 2026.
On May 5, 2021, while undergoing treatment at Virinchi Hospital, Suddula died due to cardiac arrest triggered by viral pneumonia and severe ARDS. Sujatha filed a claim with Tata AIG, submitting all required documents. However, the company rejected the claim by email, stating that the death was illness-related and therefore not covered under the policy.
Despite multiple visits to the insurance company’s office, Sujatha received no resolution and subsequently filed a complaint with the Hyderabad District Consumer Commission, which ruled in her favour. Tata AIG then challenged the order before the State Commission.
In its final ruling, the State Commission bench comprising In-Charge President Meena Ramanathan and Judicial Member V. V. Seshu Babu upheld the district order and criticised Tata AIG for denying the claim. The Commission examined the policy’s terms and noted that the definition of “Accident” under Section 3 of the General Definitions reads: “Accident, Accidental – means a sudden, unforeseen and involuntary event, caused by external visible and violent means.”
Despite Tata AIG’s argument, the Commission found the company liable to honour the insured sum. It directed Tata AIG to pay Rs 1.34 crore to PNB Housing Finance, which had sanctioned the housing loan after collecting a premium of Rs 4 lakh from the borrower. It also ordered the company to pay Rs 1 lakh as compensation to Sujatha within 30 days.
