Special Correspondent
PUNE: The Additional District Consumer Dispute Redressal Commission, presided over by Arun Gaikwad along with members Kanchan Gangadhare and Pranali Sawant, has directed The Oriental Insurance Company to compensate ₹40 lakh with interest to a complainant— the widow of a deceased Pune Municipal Corporation (PMC) employee.
Suryakant Kolte, who was employed with PMC, maintained a savings account with the Bank of Maharashtra. The bank had an agreement (MoU) with The Oriental Insurance Company to provide group accidental insurance to account holders, guaranteeing a payout of ₹40 lakh in case of accidental death. The agreement was signed on September 15, 2020.
Earlier, on June 26, 2020, Kolte converted his savings account into a Mahabank salary account. Tragically, he passed away in an accident on November 12, 2020. Following his death, his wife, Sunita Kolte, submitted a claim for the insured amount. However, The Oriental Insurance Company rejected the claim, arguing that since Kolte’s savings account was converted into a salary account, he was no longer eligible for the coverage under the policy.
Disagreeing with the insurer’s stance, the Bank of Maharashtra asserted that the claim should be honored as per the terms of the MoU. Sunita Kolte sent a legal notice to The Oriental Insurance Company, but after receiving no response, she filed a consumer complaint in 2022 through Advocate Dnyanraj Sant. The Bank of Maharashtra was included as a respondent.
The insurance company defended its position by filing a written statement rejecting the claim, whereas the bank submitted supporting documents, including letters sent to the insurer regarding the matter.
During the hearing, Adv. Sant argued that since Kolte’s salary account was simply a continuation of his savings account, he remained eligible for the insurance benefits. He asserted that the insurer had wrongfully denied the claim.
After reviewing the case, the commission ruled in favor of Sunita Kolte and instructed The Oriental Insurance Company to release the insurance amount of ₹40 lakh within 45 days from receiving the order. The insurer was also directed to pay interest at 9% per annum from the date of claim rejection. If the payment is delayed beyond 45 days, the interest rate would increase to 12% per annum.
Additionally, the commission ordered the insurer to compensate Sunita Kolte with ₹25,000 for mental distress and ₹10,000 as litigation costs, to be paid within the same timeframe.
