Suspicion is not proof: Consumer commission orders insurer to pay Rs 50 lakh

3 min readMumbaiUpdated: Jul 2, 2026 02:25 PM IST

The consumer court also directed the insurer to pay Rs 20,000 for mental, physical and financial agony and Rs 10,000 towards legal expenses. (AI generated image)

A consumer commission in Maharashtra’s Chhatrapati Sambhajinagar last month directed an insurer to pay Rs 50 lakh to a widow, rejecting its claim that her husband’s death in a road accident was a “fraudulent, staged” incident.

The commission relied on DNA and forensic evidence to rule in favour of the complainant.

The case dates back to December 14, 2023, when the complainant’s husband, Sanjay Jungle, was returning home after visiting relatives in a borrowed Maruti Alto. He reportedly lost control of the vehicle, which crashed into a tree and boulders before catching fire due to a short circuit. A passerby alerted police, who recovered the charred vehicle and his burnt body.

Less than a month before the accident, Jungle had taken a life insurance policy from Bajaj Allianz Life Insurance, with a cover of Rs 50 lakh, and paid the first half-yearly premium of Rs 43,176. The timing of the policy and the accident led the company to conduct an internal investigation.

In May 2024, Bajaj Allianz rejected the claim, alleging the death was staged to fraudulently claim insurance money and questioning the identity of the deceased, stating the body was unidentifiable.

The complainant then approached the consumer commission. The company reiterated its earlier concerns and said the case should be heard by a civil court, not the consumer commission.

She submitted various reports, including the forensic reports and documents from the Regional Transport Office.

‘Subjected to mental agony’

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The commission observed that documents, including forensic reports, showed that the DNA extracted from the body found in the car matched the son of the complainant. The consumer commission also noted that the forensic report showed no flammable substances in the car, indicating that the accident and the fire were not staged.

The commission noted that while the company may have had suspicions that led to its internal investigation and claim rejection, suspicion cannot substitute for legal proof.

“The insurance company failed to produce a single shred of independent forensic or scientific evidence to back up its allegations of fraud,” the commission said in its order passed on May 21.

“It appears that the complainant, being the wife of the deceased person and already going through financial and mental distress following her husband’s death, was subjected to mental agony by the insurance company by rejecting the claim instead of receiving the expected assistance from them,” the commission said.

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It directed the insurer to pay Rs 50 lakh, along with Rs 20,000 for mental, physical and financial agony and Rs 10,000 towards legal expenses.

The insurance company can challenge the order before the state commission.

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