Kupwara Consumer Commission Holds Oriental Insurance Liable For Denial Of Livestock Claim

The Kupwara District Consumer Disputes Redressal Commission, comprising Peerzada Qousar Hussain (President) and Ms. Nyla Yaseen (Member), has held Oriental Insurance Co. Ltd. liable for deficiency in service for failing to settle the complainant's livestock insurance claim despite timely intimation and submission of all requisite documents. The Commission directed the insurer to pay the insured amount along with compensation and litigation costs. Brief Facts of the Case: The complainant, Mst. Saleema Begum, had purchased a CB Jerry cow for a sum of ₹45,000, financed through the Central Co-operative Bank, Kralpora, and accordingly insured it with Oriental Insurance Co. Ltd. under a valid livestock insurance policy. During the subsistence of the policy, the insured cow died on 29.03.2011. The complainant immediately informed both the insurer and the bank, and a postmortem examination was duly conducted and submitted. It is stated that despite repeated submission of all required documents and several follow-ups, the insurer failed to settle the legitimate insurance claim. Even after service of a legal notice, the insurer did not respond or process the claim. Meanwhile, due to the insurer's failure to release the insured amount, the complainant received a repayment notice from the bank demanding ₹48,420 towards the outstanding loan. Left with no other option and facing financial hardship due to the insurer's failure to honour the policy, the complainant approached the Consumer Commission seeking release of the insured amount along with appropriate compensation. Contentions of the Complainant The complainant, Mst. Saleema Begum, contends that she had duly informed the insurer about the death of the insured cow on 29.03.2011, and all required documents—including the postmortem report, insurance tag, and related papers—were promptly submitted. She states that the insurance company's surveyor visited and inspected the case, after which the insurer repeatedly sought documents that she had already provided. Despite complying with every requirement, the insurer failed to settle her legitimate claim. The complainant further argues that due to the insurer's inaction, she received a bank notice for repayment of ₹48,420, causing her financial hardship. She asserts that the insurer's refusal to process the claim amounts to clear deficiency in service and unfair trade practice. Hence, she seeks release of the insured amount along with compensation for harassment and financial loss. Contentions of the Insurance Company The insurer contends that the claim was not payable because the complainant allegedly failed to provide timely intimation and complete documentation as required under the policy. It asserts that the complainant did not submit the necessary papers within the stipulated period and therefore the claim was not processed. The insurer denies any deficiency on its part and maintains that the complaint is without merit. However, no substantive evidence was produced by the insurer to support its allegations of delayed intimation or missing documents. Observation and Decision of the Commission: The Commission held that the complainant, Mst. Saleema Begum, had successfully established that her insured cow, valued at ₹45,000, died during the validity of the insurance policy and that she had promptly informed the insurer and submitted all required documents, including the postmortem report. The insurer, however, failed to justify its refusal to settle the claim and produced no evidence to support its allegations of delayed intimation or incomplete documentation. Finding the insurer guilty of deficiency in service, the Commission allowed the complaint and directed Oriental Insurance Co. Ltd. to pay the insured amount of ₹45,000 to the complainant. In addition, the Commission awarded ₹30,000 as compensation for the financial hardship and mental agony caused due to the insurer's inaction, along with ₹10,000 towards litigation expenses. The insurer was further directed to release all amounts within 30 days from the date of the order, failing which statutory interest would apply. Case Title: Mst. Saleema Begum vs. Oriental Insurance Company Ltd. Click Here To Read/Download Order

Kupwara Consumer Commission Holds Oriental Insurance Liable For Denial Of Livestock Claim

Praveen Mishra

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