TSCDRC slaps 4.5 lakh fine on New India Assurance

Hyderabad: Telangana State Consumer Disputes Redressal Commission has slapped Rs 4.5 lakh fineon The New India Assurance Company for cancelling the policies to Emu birds. The commission considered this as deficiency in service.

Six Emu farmershad taken loan from the Indian Overseas bank. They established units at Shamshabad. They also had taken insurance policies from The New India Assurance Company Limited. While the policies were in force, because of infections and toxicity emu birds started dying in spite of giving proper feeding, water and medication under the supervision of aveterinary Doctor. Each emu bird was insured for Rs 18,000.

However, between July and August 2013, about 25 to 30 birds died. The emu farmers informed the deaths of emu birds to Insurance Company along with postmortem certificates issued by a veterinary doctor, but Insurance Company did not settle the claims.

Meanwhile, the Insurance Company had cancelled the existing policies for the Emu farms. To get justice for the deficiency in service, the farmers filed a complaint before the Commission claiming for the compensation. The Commission directed the the insurance company to pay Rs 18,000 per bird for 25 birds Rs 4.50 lakh as compensation and Rs 5,000 for legal costs.

The Commission had directed the Insurance Company to pay compensation in five more similar cases. V Gowri Shanker Rao, an Advocate told The Hans India that according to Consumer Protection Act, Emu bird farm owners, poultry farmers and owners of buffalos whose insurance claims were not settled or rejected without any basis they could approach.