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Bajaj Allianz held liable, to pay Rs 5 lakh to policy holder

Nitin Verma bought a travel insurance policy for his mother ahead of her US visit as a precautionary measure. But when she died during her two-month trip, the insurer refused to pay up, claiming her pre-existing disease at the time of taking the policy was not disclosed

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Then began Verma's tussle with Bajaj Allianz General Insurance, whom he dragged to the consumer court for deficiency in service. The National Consumer Disputes Redressal Commission has now directed the insurer to pay him over Rs.5 lakh, including compensation and litigation costs.

Over two years after the death of Verma's mother, Suman Verma, the insurance company's bid to escape liability by repudiating the claim has backfired. The commission's presiding member, K.S. Chaudhari, and member B.C. Gupta, in a recent order, directed the insurance firm to pay $10,659 (Rs.4.75 lakh at May 2011 rates) along with Rs.30,000 as compensation and Rs.15,000 as litigation costs.

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