Archive · 11 Jun 2025
Consumer Court Orders Tata AIG to Pay Loan Insurance Claim
A woman's husband took out a large loan, and part of the agreement was insurance to pay off the loan if he died.
When he passed away from a heart condition, the insurance company, Tata AIG, refused to pay.
The wife appealed to the Consumer Commission in Telangana, and after looking at the facts, the commission ordered the insurance company to pay the loan.
The commission ruled that since the man died from cardiac arrest, it was covered by the insurance, and the insurance company had to follow through with its agreement.
Telangana Consumer Commission directed Tata AIG to pay Rs 1.34 crore.
The order came after the death of a housing loan holder.
Tata AIG had rejected the initial insurance claim.
The loan holder, Doddana Gowd Suddula, died from cardiac arrest.
The commission found Tata AIG liable to pay the insured sum.
- Who
- The Commission, Tata AIG, and Suddala Sujatha.
- What
- The Telangana State Consumer Disputes Redressal Commission directed Tata AIG to pay a housing loan insurance claim.
- When
- The Commission passed the order recently.
- Where
- Telangana, India.
- Why
- Tata AIG denied the claim following the death of the loan holder, which the commission deemed covered by the insurance policy.
Tata AIG
Consumer Commission
Insurance Claim Coverage
Tata AIG
Tata AIG claimed the death was illness-related and not covered.
Consumer Commission
The Consumer Commission found the company liable based on policy terms.
- Insurance Company
- Tata AIG
- Claim Amount
- Rs 1.34 crore
- Loan Holder
- Doddana Gowd Suddula
- Loan Provider
- PNB Housing Finance Limited
- Cause of Death
- Cardiac arrest triggered by viral pneumonia and severe ARDS
- Compensation to Sujatha
- Rs 1 lakh