Page 44 - Insurance Times April 2021

guide you in understanding your policy. You are required to Signature and Attestation: This section contains a
refer to it when reading the policy. place for the signature of the insurance company's
authorized officer and the policyholder's signature. You are
Policy Benefits: Describes the types of benefits the policy
required to sign this part of the policy only when satisfied
will pay in the event of a loss. These include theft, burglary,
with the policy. You have a maximum of thirty (30) days, also
death, disability, surrender and maturity benefits among
known as the cooling off period, within which you can decide
others.
to sign or refuse to sign the policy.
Policy Exclusions: Exclusions are risks the insurance
company is not prepared to cover under the policy. Examples Many buyers of insurance sign policies without
include HIV/AIDS, riot, intake of illegal drugs & alcohol and understanding its terms and proceed to keep it safely only
war, among others. Some insurers, however, allow to produce it at the time of a loss. This is dangerous and is
policyholders to buy back some of the exclusions by paying synonymous with using a driving license to which you have
additional premium. not appended your signature and whose expiry date you do
not know. Note that different policies have different terms.
Policy Conditions: These are rules guiding the policy such
as how to revive a lapsed policy, surrendering a policy, rules In case you do not understand any terms in your policy,
guiding policy loans, loss of policy document, duty of contact your insurance agent, medical insurance provider,
disclosure and policy cancellation and termination. insurance company or IRDAI for further guidance.

Minor lapse on part of driver no reason to dismiss

insurance claim

Telangana State Consumer Disputes Redressal Commission held that a minor lapse on the driver's part is not liable for
a claim to be dismissed, and directed an insurance company to reimburse Rs. 17.54 lakh.
The Commission bench, comprising president MSK Jaiswal and member Meena Ramanathan, was dealing with a
complaint filed by Ch Sudhakara Raju, a resident of Banjara Hills, against Bharati Axa General Insurance Co Ltd. The
complainant stated that in September 2013 his car, purchased for over Rs. 60.21 lakh, was stranded in Jubilee Hills
due to heavy rains when water overflowed from KBR National Park. The water entered the car's engine, and it would
not start. The vehicle was then towed to a workshop on the same night. When this was informed to the opposite
party, it sent an appointed surveyor, and after inspecting the vehicle, reported 'hydrostatic loss' which was not covered
by the insurance policy.
The complainant wrote to the opposite parties contending the outcome of the vehicle inspection as improper. After
this, the complainant engaged the services of an IRDA surveyor who assessed the damage and noted that it was due
to flood water entering the engine manifold, damaging its parts. The cost of repair was estimated at over Rs. 20 lakh.
For their part, the opposite party denied all allegations, and maintained that except Rs. 53,108, no amount is payable
by it, and that the damages to the vehicle are not insured.
After taking all submission into consideration, the Commission noted that while there was a 'minor lapse' on the driver's
part, 'that by itself cannot be taken as a serious lapse on her part so as to deny the benefits of the insurance policy.'
The order reads, "Taking into consideration the above facts and circumstances and the natural human nature and the
way in which people conduct themselves, we feel that it will be highly unjust, unfair and injustice to the complainant
with the order so as to make her suffer for the act which she has admittedly committed as has been borne out from
the letter Ex.A5. We feel that the interest of justice demands that this by itself cannot be taken as a ground for the
insurance company to deny the claim of the complainant."
The Commission also touched upon the appointment of surveyors by both parties in the case. Apart from directing the
opposite party to reimburse Rs. 17.54 lakh as assessed by surveyors of the complainant, costs of Rs. 10,000 were also
ordered.

44 The Insurance Times, April 2021