LAHORE: A medical student has availed payment of the annual fee by the insurance company after the failure of her father to pay second premium within stipulated period on account of a sudden death, said sources.
According to details, one insurance company approached a medical college to provide coverage for the annual fees of students.
As per terms of the policy, the premium had to be paid by the fathers of the students being the owners of policies. Along with this insurance plan, it was also mandatory requirement of the company to purchase a policy namely, Salamati Plan, to cover the life risk of students.
One student deposited the first premium for both policies through her father. Unfortunately, the father of the student suddenly died who was also sole earning hand of the family and was also paying the premium and the annual fee of the student.
The student filed insurance claim on the death of her father but neither any reply was made nor was the insurance claim paid by the company. The student was of the view that the premium was paid well within time and her father died during the pendency of the policy.
Therefore, according to the terms of the policy the insurance company was bound to pay her annual fee for the remaining period and also the proceeds of the Salamati Plan.
However, the company adopted a viewpoint that it had approached the college administration which offered to the students to purchase the policies.
It further contended that the late father of the student failed to pay second premium within the stipulated period or on the due date, therefore, the policy was lapsed and it was under no obligation to pay the claim.
But the student rebutted it by stating that neither the insurance company nor the college administration gave any notice to her or her father for the payment of second premium, therefore, her valuable right secured by law is being denied for no reason.
The company, in the other hand, maintained that the schedule of payment was available in the policy documents, therefore, there was no need to issue any notice to the college administration or father of the student for payment of the remaining premium.
According to the sources, the appellate forum directed the company to pay the annual fee of the student and refund the premium amount against the Salamati Plan in case the student is not interested to continue the same.
Copyright Business Recorder, 2023
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