Insurance firm asked to pay interest on delayed payment

August7 The District Consumer Disputes Redressal Commission here has directed an insurance company to pay interest on the maturity amount released to a consumer six months after due date. Shelly Dhawan, a resident of Sector 36, Chandigarh, alleged that she had obtained a policy from Bajaj Allianz Life Insurance Company Limited in the name of her minor daughter and deposited yearly premiums from 2004 to 2019. She said the insurance company was to pay first payout of 81,096.47 against the policy by March, 2020, but it failed to release the due amount despite repeated requests and emails. The insurance company denied all the charges, saying that they paid a net amount of 82,482 as first payout on September 14, 2020 by crediting it

in the bank account furnished
by the complainant and the
remaining amount was to be
paid on attaining the age of 19,
20 and 21 years, respectively.
The company pleaded that
there was a slight delay in the
payment due to the closure of
the office in view of the Covid19. After hearing the arguments, the commission noted
that the complainant was entitled for the interest on the payout amount of ~82,482 for the
delayed period.
The commission thus directed the insurance company to
pay her an interest at nine per
cent per annum on the
amount of 82,482 from the
due date to the day it is paid.
The commission further
said it was not imposing any
cost or compensation on the
company taking a lenient
view due to Covid-19 situation which hampered the
payment in time.

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