Summary:
AHMEDABAD: The National Consumer Dispute Redressal Commission NCDRC ) has ordered the Gujarat State Road Transportation Corporation GSRTC ) to pay insurance amount to widow of its former employee, who had regularly paid premium for the Group Insurance Company.However, GSRTC never deposited the premium amount to the insurance company and therefore GSRTC was denying life insurance to the widow. A GSRTC employee Kanabhai Patel contributed to GSRTC’s Group Insurance Scheme. The corporation deducted Rs 40 towards life insurance premium from 2000 to 2004 from his salary account. “When the petitioners (GSRTC) had deducted insurance premium from the salary of the insured employee, on what basis now the petitioners are claiming that the employee was not entitled to be a member of the group insurance scheme. On January 13, 2005, Patel passed away and his widow, Bhagwatiben, sought insurance of Rs 42,000 as her late husband paid premium for the insurance scheme.The GSRTC only paid her the total amount of premium paid by Patel and refused to pay the insurance amount..