Garda investigation into drowned woman’s life insurance policies

A Garda investigation is under way in relation to life insurance policies worth €2.2m taken out on a woman who drowned in India last year, the Commercial Court has heard.

Two insurance companies are refusing to pay out €1m on policies which the deceased woman’s husband is claiming because of the Garda investigation into alleged fraud when the policies were taken out and the likelihood of the re-activation of the Indian police investigation into her death.

Madhava Reddy Gogireddy, a manufacturing operator from Carpenterstown Road, Castleknock, Dublin, is suing Friends First Assurance Company and Irish Life Assurance arising from policies for his wife, Indira Suram. Each policy was for €500,000.

Ms Suram died while swimming at the Royal Rivea Resort, Cyberabad, India, on May 14th, 2014.

Both companies claim the two policies, along with two others for €1.2m with two other insurers, were taken out by Mr Reddy Gogireddy over a relatively short period of time between October and December 2006. They also claim he did not disclose the fact he had policies with other companies.

Mr Reddy Gogireddy, a father of two children aged three and five, has also submitted claims under the two other policies, with New Ireland Assurance and Aviva Life and Pensions, which are worth €700,000 and €500,000 respectively.

In an affidavit, he says he understands all four insurance companies engaged a representative to travel to India to further investigate the circumstances of his wife’s death. His parents-in-law were interviewed and he was “rigorously interviewed” by a claims agent.

He says “absolutely no explanation or rationale” was provided as to why his claims against Friends First and Irish Life had not been dealt with. He is, as a result, subject to financial constraints in circumstances where he is trying to maintain his employment and care for his children

His application to fast-track his proceedings against Friends First and Irish Life in the Commercial Court was rejected by Mr Justice Brian McGovern following objections from lawyers on behalf of the two insurers. The case will now proceed through the ordinary High Court list.

In an affidavit, Irish Life technical claims manager Jimmy Disney said the claims investigator who travelled to India to inquire into the death spoke with the local investigating policeman who said he was the only officer on duty at the time of the drowning incident.

The officer accepted the investigation into the incident had been minimal and was essentially based on what Mr Reddy Gogireddy had told him, Mr Disney said.

A senior officer at the local police station said he believed the matter should be re-investigated but suggested there should be a request through the Irish Embassy, Mr Disney said.

Friends First separately made a report to the gardaí in relation to the circumstances of him taking out the policy and as a result an investigation has been started into possible fraud offences, Mr Disney said.

Lawyers for Friends First and Irish Life, in objecting to the case being fast-tracked, told Mr Justice McGovern the garda and Indian investigations should be first allowed run their course. They also argued this was about two separate claims and did not meet the €1m threshold for admission of cases to the commercial list.

Counsel for Mr Reddy Gogireddy said there was precedent for consolidating claims. The companies main objection to transfer was that this was not a business dispute but Mr Reddy Gogireddy was in fact seeking specific performance of business documents, namely life insurance policies, counsel said.

The companies had not previously raised the issue of police investigations despite it being 13 months since this accident, counsel added.