Archive · 20 Jul 2026
Insurer Ordered to Pay Rs 50 Lakh to Accident Victim's Nominee
A woman named Gandla Prameela's husband died in a road accident.
He had an insurance policy worth ₹50 lakh.
The insurance company, ICICI Lombard, said no to paying the money because they said she didn't give them the police final report and income tax returns.
But the court said that was not right because the police and medical reports showed the accident happened, and the insurance company didn't ask for proof of income when they gave the policy.
The court said the insurance company should pay the ₹50 lakh, plus some extra money for the trouble and legal costs.
They also said if the insurance company doesn't pay on time, they have to pay extra money as interest.
The District Consumer Disputes Redressal Commission, Kurnool, directed ICICI Lombard General Insurance Company to pay ₹50 lakh to the nominee of an accident victim.
The claim was rejected by the insurer due to non-submission of the police final report and income tax returns.
The Commission found the rejection unjustified as the accident and death were established through police and medical records.
The insurer was ordered to pay ₹20,000 for mental agony and ₹10,000 for litigation costs within 45 days.
A 9% annual interest would apply if the payment was not made within the stipulated period.
- Who
- Gandla Prameela, nominee of the accident victim, and ICICI Lombard General Insurance Company
- What
- The District Consumer Disputes Redressal Commission, Kurnool, directed the insurance company to pay ₹50 lakh to the nominee of an accident victim after the claim was wrongly repudiated.
- When
- The accident occurred on July 28, 2025, and the complaint was filed in 2025.
- Where
- Kurnool, Andhra Pradesh
- Why
- The insurance company rejected the claim citing non-submission of the police final report and income tax returns, but the Commission found the rejection to be unjustified.
Insurance Company
Consumer Commission
Claim Rejection
Insurance Company
The claim was rejected due to non-submission of the police final report and income tax returns.
Consumer Commission
The claim was wrongly repudiated as the accident and death were established through police and medical records, and the chargesheet constituted the final report.
Proof of Income
Insurance Company
The insurer sought proof of income and income tax returns to process the claim.
Consumer Commission
The insurer did not seek proof of income while issuing the policy and could not impose new conditions at the claim stage.
- Policy Amount
- ₹50 lakh
- Accident Date
- July 28, 2025
- Compensation for Mental Agony
- ₹20,000
- Litigation Costs
- ₹10,000
- Interest Rate for Delayed Payment
- 9% annually
- Time to Pay
- 45 days