ISLAMABAD, Pakistan: President Dr Arif Alvi ordered a private insurance company to settle the legitimate fire insurance claim of Rs 2.1 million filed by the owner of a clothing store in Lahore and called him act of maladministration on the part of the company.
The Chairman rejected a representation made by M/s Asia Insurance Company challenging the decision of the Federal Insurance Ombudsman (FIO) in which the insurance company was responsible for settling his client’s insurance claim of Rs 2,100,706 within 30 days, which he had been illegally denied.
The President, in his decision, noted that the company had admitted the authenticity of the fire cover note which acknowledged that the fire insurance policy was in force and had also admitted the findings of the investigation report which determined a loss of Rs. 2.11 million by a fire started due to a short circuit of electricity, but still denied his client’s legitimate claim, which the chairman called an act of maladministration.
According to the details, the insurance company had refused to pay the fire insurance claim of M/s Taha Mohid Enterprises (Franchise) Garments (the plaintiff) on the grounds that when the fire occurred, the police fire insurance was not in effect.
The complainant lodged an appeal with the Federal Insurance Ombudsman (FIO). The FIO admitted the Complainant’s claim and ordered the company to pay the claim to its client within 30 days.
Instead of complying with the impugned decision, the insurance company preferred to represent itself before the President, which was also rejected in favor of the applicant.