The National Consumer Commission has pulled up the Rajasthan State Commission for "misdirecting" itself while allowing an insurance claim of a man, who had lost one of his hands, on "emotional perception".
"State Commission while interpreting terms of policy has totally misdirected itself, stretching terms to impermissible extent, presumably on emotional perception," the Commission comprising Members justice BNP Singh and SK Naik said.
It passed the order on a petition of the LIC challenging the State Commission's direction to pay Rs one lakh claim amount to policy holder Girraj Mehta on the ground that the loss of limb would be deemed to be a permanent disability.
The State Commission had said "there would be a reduction in his power to earn money or to do other job and for that aspect also the case of amputation of one hand should be treated as permanent loss."
"Policy condition (of LIC) in no uncertain terms enjoins that in case of accident, there must be total and permanent disability so that insured can never sufficiently do or follow to earn or obtain any wages, compensation or profit," the apex consumer body said.
It also did not agree with the decision of the State Commission, saying that the insured person was not entitled to the benefit of the policy as impairment was not total and permanent.
"Permanent disability, which would render the insured not capable to constitute such disability since there was amputation of only one hand, that too to the extent of 75 per cent disability, rest part of terms of policy having been satisfied, he would not be eligible to secure benefit of accident-cum-disability benefit policy," the National Consumer Commission said.
