President upholds ombudsman to insurance company, pay damages to INGO

KARACHI: President of Pakistan has upheld order of the Federal Insurance Ombudsman in a case filed against a private insurance company by an international non-governmental organization connected with the medical supplies.

“The allegation of maladministration stands established by the Insurance Ombudsman and his findings and recommendations are appropriate which do not warrant any interference,” read the order, a copy of which is available with the APP.

After thoroughly hearing the case filed in 2012, the Karachi based ombudsman had ordered on July 22, 2014, M/S United Insurance Company of Pakistan (Ltd) to pay the claim of 56,143 Euros to the INGO Medical Humanitarian Organization.

The INGO maintained in their case that on June 15, 2011, a fire erupted at their warehouse in Islamabad containing medicines and other stock to be supplied for relief of disaster hit people.
Subsequently they filed an insurance claim with the company and the company’s surveyors also established their claim yet they were not paid the damages due to a negligible mistake.

“The complainant INGO is entitled to their claim of loss and non acceptance of surveyors’ report by the Insurance Company amounts to maladministration,” the ombudsman concluded in his order asking the company to pay 56,143 Euros within 30 days.

However, the company challenged the said order stating in their petition before the president that concerned ombudsman had no jurisdiction over the matter and that the cause of rejecting the INGO’s claim was justified.

The President’s office perused contentions and orders of the litigant parties and the ombudsman before upholding the ombudsman’s order for payment against the damages within 30 days.- APP