Insurer rejects accident claim over ‘alcohol intake history’, widow secures Rs 60 lakh

The Chandigarh District Consumer Disputes Redressal Commission has ruled in favor of an insurance company and a bank, ordering them to pay Rs 60 lakh to the widow of a deceased head constable. The decision was made after the commission determined that a hospital record mentioning a history of alcohol consumption did not prove that the deceased was under the influence when the accident happened.

The commission held that the insurance company acted unfairly by rejecting the claim based on the deceased's alcohol consumption history, which is not the same as being intoxicated at the time of the accident. The commission awarded Rs 20,000 to the widow as compensation for mental agony and harassment, as well as legal costs. The ruling emphasized that insurers cannot reject accidental death claims based solely on a hospital record mentioning alcohol consumption and stressed the importance of establishing intoxication through credible medical or scientific evidence before applying policy exclusions.