CHENNAI: In a significant legal development, the district consumer commission has mandated the Road Safety Club, Chennai, to provide a compensation of ₹3.3 lakh to a paralysed member for the issuance of purportedly ‘fraudulent’ insurance certificates, promising accident coverage.
The case dates back to 2003 when the Road Safety Club in T Nagar initiated a road safety program, enrolling members for a fee of ₹3,125. Under this program, members were assured personal accident insurance coverage for 96 months through a group insurance scheme, purportedly in collaboration with a private insurance company. Despite receiving insurance certificates guaranteeing up to ₹3 lakh for permanent disability resulting from road accidents, a member of the club, Bhaskaran, suffered a life-altering accident in 2009 when he was struck by a speeding autorickshaw while riding his bicycle. This tragic incident left Bhaskaran paralysed, resulting in the loss of his job with the Indian Railways and rendering him bedridden since then. Upon submission of a claim to the private insurance company, Bhaskaran’s request was denied. The insurance firm alleged that the insurance certificates issued by the club for the relevant period were unauthorized and fraudulently produced, utilizing pre-dated forms. They further accused Bhaskaran of colluding with the club in the fabrication of these documents.
Following a confrontation with the insurance firm, the Road Safety Club admitted to errors in the issuance of the insurance certificates and agreed to accept responsibility. This acknowledgment formed a crucial aspect of the legal proceedings, as Bhaskaran pursued justice through the Chennai (North) District Consumer Disputes Redressal Commission. After a thorough examination of all parties involved, the commission concluded that the Road Safety Club was liable to provide compensation amounting to ₹3 lakh for Bhaskaran’s disability, in addition to an extra ₹30,000 for the mental distress endured by him and his family.
This ruling serves as a significant precedent in consumer protection jurisprudence, underscoring the accountability of organizations in ensuring the validity and authenticity of insurance offerings provided to their members. It also highlights the pivotal role of regulatory bodies in safeguarding consumer rights and upholding standards of transparency and fairness in such transactions. The case of Bhaskaran serves as a poignant reminder of the profound impact of fraudulent practices on individuals’ lives and underscores the importance of robust mechanisms for redressal and restitution in instances of consumer grievances.
