President Dr Arif Alvi Thursday ordered the United Insurance Company (UIC) to pay Rs4.5 million insurance claim to the customer along with eight years’ profit.
The president, while rejecting the appeal of the United Insurance Company of Pakistan Limited against the decision of the Federal Insurance Ombudsman, observed that the company had kept the matter pending for eight years and made a profit on its customer’s money.
According to a news release of the President House Press Wing, Imtiaz Ahmed, a resident of Karachi, had his car insured for Rs4.5 million.
When the car was stolen, he approached the UIC with an insurance claim of Rs4.5 million. However, the company refused to honour his claim on the pretext that Ahmed had overstated the price of the vehicle.
On his petition, the Federal Insurance Ombudsman gave his verdict in the customer’s favour.
The UIC filed an appeal against the ombudsman’s decision before the president, which the latter rejected and ordered the company to pay the insurance claim along with profit for eight years as it had collected the premium from the customer on the insured amount of Rs4.5 million.
Published in The Express Tribune, September 15th, 2023.
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