The District Consumer Disputes Redressal Commission, Rohtak, has directed a general insurance company to pay Rs 4 lakh with 9 per cent annual interest to a car owner, holding the insurer guilty of deficiency in service for unjustifiably withholding a genuine insurance claim. The order was passed by a bench headed by Nagender Singh Kadian.
Incident and Insurance Policy Details
The complainant, Pawan, a resident of Sunderpur village in Rohtak district, had purchased a comprehensive insurance policy for his car with an Insured Declared Value (IDV) of Rs 5.08 lakh. On February 3, 2021, while travelling from Rohtak to Katwara, the vehicle suddenly caught fire and was completely gutted despite efforts by the fire brigade to douse the flames.
According to the complaint, the incident was reported to the police and the insurance company immediately. A surveyor appointed by the insurer declared the vehicle a case of total loss. However, despite submission of the required documents, the claim remained unsettled, forcing the complainant to approach the consumer commission.
Insurer's Defense and Commission's Observations
The insurance company alleged that the car owner failed to furnish several documents and clarifications required for processing the claim. It also questioned the circumstances leading to the fire and raised doubts over the insured value of the vehicle. After examining the material on record, the Commission observed that many of the documents sought by the insurer, including service records, income tax returns, running details of the vehicle and sale-purchase documents, were not essential for settlement of the claim.
The Commission further observed that if the insurer intended to ascertain the exact cause of the fire, it was its responsibility to obtain a technical report from the manufacturer rather than requiring the complainant to do so.
Order and Compensation
Holding that the insurer had wrongly delayed settlement of a genuine claim, the Commission directed it to pay Rs 4 lakh after adjusting the salvage value of the vehicle, along with interest at 9 per cent per annum from August 11, 2021, till the date of payment. Besides, the Commission awarded Rs 5,000 as compensation for deficiency in service and mental harassment and another Rs 5,000 towards litigation expenses. The insurer has been directed to comply with the order within one month of receiving a copy of the judgment.
