he NCDRC not only awarded a hefty compensation to the complainant, but also directed the guilty authorities to form a trust in memory of the deceased and deposit Rs 35 lakh as a corpus funds in it, to be used for underprivileged girls.
The National Consumer Disputes Redressal Commission (NCDRC) has issued a scathing verdict against the senior state medical commissioners of the Employees’ State Insurance Corporation (ESIC) in Hyderabad, Mumbai and Delhi, reprimanding them for their failure to provide timely medical assistance funds to an employee, resulting in the death of her 25-year-old daughter.
The NCDRC not only awarded a hefty compensation to the complainant, but also directed the guilty authorities to form a trust in memory of the deceased and deposit Rs 35 lakh as a corpus funds in it, to be used for underprivileged girls.
The case involved Manda Kumari, a resident of Hyderabad and a member of the ESIC, who sought medical support for her daughter, Shanti Ayani. Shanti was diagnosed with blood cancer in 2011 after initially experiencing frequent colds and fevers. Medical assessments recommended a bone marrow transplantation, for which the Tata Memorial Centre (TMC) estimated a treatment cost of Rs 50 lakh.
Despite a letter of credit issued to TMC in November 2012, the hospital requested a deposit before commencing treatment. However, ESIC delayed the release of funds despite repeated reminders. The situation became dire and Kumari approached the prime minister and the National Human Rights Commission for intervention. Additionally, a writ petition was filed with the Andhra Pradesh High Court, which issued an interim order directing the immediate release of funds. This order, too, was ignored by ESIC.
Due to the lack of funds, Kumari was forced to admit her daughter to a different hospital for chemotherapy in October 2013. Within a month, Shanti succumbed to her illness.
The state commission, when it heard the case, found the authorities guilty of negligence and awarded a compensation of Rs5 lakh to Kumari. Unsatisfied, Kumari appealed to the NCDRC for a higher compensation.
In its defence, ESIC argued that the delay in disbursing the funds was due to the time taken to verify the authenticity of the claim, despite having issued a letter of credit to TMC. ESIC contended that by the time the funds were approved for release, the patient had already passed away.
However, the NCDRC found this explanation inadequate and held ESIC accountable for the “inordinate delay” in processing the claim, which directly contributed to Shanti’s untimely death. The commission criticised the initial compensation of Rs 5 lakh as “too meagre”.
The NCDRC ruled: “After thoughtful consideration of the entire facts and circumstances of the case, and the inordinate delay in sanctioning or disbursing the amount to which the complainant was entitled, which ultimately led to the unfortunate and untimely death of her daughter, we are of the considered view that the compensation of Rs5 lakh awarded by the state commission is too meagre. The complainant definitely deserves a much higher compensation.”
The NCDRC ordered the authorities to immediately form a trust in memory of Shanti Ayani, using the corpus fund to support the education and health of underprivileged girls in the area.
Page Source : Free press journal
