State Commission Upholds District Order
The State Consumer Disputes Redressal Commission, Chandigarh, has dismissed an appeal by Go Digit General Insurance Company Limited, directing the insurer to pay a claim of Rs 15 lakh to a city resident. The Commission observed that an insurer cannot be permitted to deny a genuine claim on hyper-technical and irrelevant grounds that have no direct nexus with the occurrence of the insured event.
Background of the Case
The complainant, Jayvati, filed a claim after her son died in a motorcycle accident. The son was covered under an insurance policy issued by Go Digit. Despite submitting all requisite documents, the insurer rejected the claim, citing failure to produce the deceased’s driving licence and lack of evidence establishing the motorcycle’s involvement in the accident. Jayvati then approached the District Consumer Disputes Redressal Commission, Chandigarh, alleging deficiency in service and unfair trade practice.
District Commission's Order
On October 1, 2025, the District Commission allowed the complaint and directed Go Digit to pay the claim amount of Rs 15 lakh, along with Rs 15,000 as compensation for mental agony and harassment, and Rs 10,000 towards litigation costs. The insurer appealed this order before the State Commission.
State Commission's Observations
After hearing the matter, the State Commission upheld the District Commission’s order. The Commission noted that the appellant failed to point out any specific exclusion clause in the insurance policy that would disentitle the complainant from receiving the insured amount. It reiterated a well-settled principle of insurance jurisprudence: while terms and conditions of an insurance policy are binding, they must be interpreted and applied in a fair, reasonable, and purposive manner consistent with the object of the contract.
“An insurer cannot be permitted to repudiate a genuine claim on hyper-technical, irrelevant, or inconsequential grounds having no direct nexus with the occurrence of the insured event,” the Commission observed.
Impact of the Ruling
This ruling reinforces consumer rights in insurance disputes, emphasizing that insurers must not reject claims on trivial technicalities. The decision sets a precedent that policy terms should be construed to serve the contract’s purpose, not to defeat legitimate claims. The State Commission’s dismissal of the appeal means Go Digit must pay the full claim amount along with compensation and costs as ordered by the District Commission.
