Insurance Companies Penalized for Non-Payment of Accident Claims in Shahjahanpur

In a decisive move, Shahjahanpur district authorities have sealed the offices of two insurance companies for failing to comply with court orders regarding accident insurance claims. The district magistrate has taken strict measures, including halting transactions from one company's bank account. This action follows repeated failures by the companies to pay the mandated compensation amounts. The total outstanding claims amount to significant sums, prompting the district magistrate to enforce compliance through these measures. Read on to discover the details of this enforcement action and its implications for the insurance firms involved.

By Narendra Chaudhary May 22, 2025, 11:58 IST

Action Taken Against Insurance Firms

In Shahjahanpur district, two insurance companies have had their offices sealed following a court order due to their failure to pay out accident insurance claims. Additionally, transactions from one company's bank account have been halted as per the directive of the district magistrate.

District Magistrate Dharmendra Pratap Singh announced on Thursday that actions were taken against three insurance firms on Wednesday for not disbursing the accident insurance funds.

As part of this enforcement, the offices of Oriental Insurance and National Insurance Company were sealed on Wednesday night, with senior district officials and police present during the operation.

Furthermore, transactions from the bank account of United India Insurance have also been restricted.

Singh explained that local courts had previously ordered these insurance companies to pay compensation for accident claims in various cases, but they failed to comply.

Following this, the district magistrate convened a meeting with Sub-Divisional Magistrate Sanjay Kumar Pandey to discuss stringent measures. He noted that United India Insurance owes approximately ₹48 lakh, Oriental Insurance around ₹1.11 crore, and National Insurance close to ₹74 lakh.