4 Insurance Firms Rs 1 75 Crore Punjab Farmer Scooter Crash Dog

A Punjab farmer’s death in a scooter accident in 2017 sparked a legal battle between his family and four private insurance companies, which claimed he had died from undisclosed illnesses rather than crash injuries. Nearly nine years later, the National Consumer Disputes Redressal Commission (NCDRC) has ordered insurers to pay Rs 1.75 crore after finding that a fatal skull fracture had caused his death.

A bench comprising AVM J Rajendra (Retd) (presiding member) and Justice Anoop Kumar Mendiratta (member) was hearing appeals filed by Reliance General Insurance Company, Bharti AXA General Insurance Company and ICICI Lombard General Insurance Company and Star Health and Allied Insurance Company.

“The Deceased Life Assured (DLA) suffered multiple external and internal injuries, including a ‘frontal bone fracture’ during the accident, which is covered under external and violent means…The frontal bone fracture in the skull is sufficient in the ordinary course of nature to cause death,” the commission said on June 10, rejecting the insurers’ argument that the farmer had died due to heart and lung ailments.

The dispute traces its roots to August 9, 2017, when one Nirmal Singh, a resident of Sahibana village in Ludhiana district, Punjab, was travelling on a scooter with his son Harjinder Singh.

According to the family, a dog suddenly crossed the road, causing the scooter to lose balance and fall. Nirmal suffered serious head injuries and was rushed to Fortis Hospital in Ludhiana, where he was declared dead.

The police initiated proceedings under Section 174 (legal procedure for police to investigate and report on unnatural or suspicious deaths) of the Code of Criminal Procedure. A post-mortem examination was later conducted at Civil Hospital, Ludhiana.

Harjinder Singh and his brother Hardeep Singh challenged the repudiation of the claims before consumer forums. The family relied on the post-mortem report, police DDR (daily diary report), village certificates and affidavits from residents to establish that Nirmal Singh had died in a genuine road accident.

They maintained that the insurers had no evidence showing that he had been diagnosed with serious heart or lung diseases before purchasing the policies.

The Punjab State Consumer Disputes Redressal Commission accepted their case and directed the insurers to pay the claims. The insurance companies subsequently approached the NCDRC.

The insurers sought to rely on opinions from experts who claimed that the head injury was only an incidental finding and that the real cause of death was septicaemia arising from prolonged heart and lung disease. However, the commission refused to accept those opinions.

It observed that the experts had never examined Nirmal and had merely reviewed the post-mortem report after the event. In contrast, the doctor who conducted the post-mortem had physically examined the body and specifically linked the death to the head injury and skull fracture.

The commission said the insurers had failed to produce any convincing material to discredit the post-mortem findings or establish that the accident was fabricated.

After examining the evidence, the commission concluded that Nirmal’s death resulted from injuries suffered in the road accident and that the insurers had failed to establish either fraud or concealment of material facts.

The NCDRC accordingly dismissed the appeals filed by Reliance General Insurance, Bharti AXA and ICICI Lombard and upheld the orders directing payment of their respective policy amounts.

It also allowed the complaint against Star Health and Allied Insurance Company and directed the insurer to pay Rs 1 crore with interest at 7 per cent per annum from the date of repudiation until actual payment. If the amount is not paid within six weeks, the balance amount will carry interest at 8 per cent per annum from the date of default.

With the ruling, the family stands to receive the entire Rs 1.75 crore insurance cover, along with years of accrued interest, bringing an end to a legal battle that began shortly after a fatal accident on a Punjab road in August 2017.

Vineet Upadhyay is an Assistant Editor with The Indian Express, where he leads specialized coverage of the Indian judicial system. Expertise Specialized Legal Authority: Vineet has spent the better part of his career analyzing the intricacies of the law. His expertise lies in "demystifying" judgments from the Supreme Court of India, various High Courts, and District Courts. His reporting covers a vast spectrum of legal issues, including: Constitutional & Civil Rights: Reporting on landmark rulings regarding privacy, equality, and state accountability. Criminal Justice & Enforcement: Detailed coverage of high-profile cases involving the Enforcement Directorate (ED), NIA, and POCSO matters. Consumer Rights & Environmental Law: Authoritative pieces on medical negligence compensation, environmental protection (such as the "living person" status of rivers), and labor rights. Over a Decade of Professional Experience: Prior to joining The Indian Express, he served as a Principal Correspondent/Legal Reporter for The Times of India and held significant roles at The New Indian Express. His tenure has seen him report from critical legal hubs, including Delhi and Uttarakhand. ... Read More