President Dr Arif Alvi has directed a private Insurance company to settle the rightful Fire Insurance claim of Rs 2.1 million filed by the owner of a garment shop in Lahore and termed it an act of maladministration on part of the Company.
The president rejected a representation preferred by M/s Asia Insurance Company contesting the Federal Insurance Ombudsman’s (FIO) decision wherein the Insurance Company was directed to settle the insurance claim of Rs 2,100,706 of its client within 30 days, which was unlawfully denied to him.
The president in his decision observed that the company had admitted the authenticity of the Fire Cover Note which acknowledged that the Fire Insurance Policy was in force.
It also admitted the findings of the survey report which determined a loss of Rs. 2.11 million by a fire ignited due to electricity short-circuiting, but still denied the rightful claim of its client, which the President termed as an act of maladministration.
As per details, the insurance company had refused to pay the Fire Insurance Claim of M/s Taha Mohid Enterprises (Franchise) Garments (the complainant) on the ground that when the fire incident occurred, the Fire Insurance Policy was not in force.
The complainant filed an appeal before the Federal Insurance Ombudsman (FIO). FIO admitted the claim of the Complainant and directed the company to pay the claim to its client within 30 days.
Instead of complying with the impugned decision, the Insurance company preferred representation before the president which was also rejected in favour of the complainant.
