COIMBATORE: The District Consumer Redressal Commission ordered a private life insurance company to pay Rs 1 lakh compensation to the family of a Covid - 19 victim for failing to settle the victim’s housing loan insurance.Further, the commission led by chairman R Thangavel, members P Marimuthu and G Suguna also directed a private bank to waive off Rs 27.54 lakh housing loan.
R Sivaranjani of Vedapatti approached the forum claiming a private bank was denying to dispose the housing loan availed by her husband K Ramkumar, who died in June 2021 due to Covid - 19. Challenging the decision by a private life insurance company and a private bank as they denied the disposal of loan amount citing that the petitioner failed to disclose he was affected with diabetes when he availed of insurance for his housing loan.
The respondents argued that they would not dispose of the loan as he died due to diabetic reasons and not to Covid - 19.As the petitioner’s counsel proved that the patient died due to Covid - 19 and argued based on the Supreme Court’s direction that insurance claims should not be denied on pointing the lifestyle diseases, the court accepted the reason.Following that it ordered to pay Rs 1 lakh compensation after disposing of the loan amount. Also, the forum directed it to provide Rs 3,000 cost to the petitioner.