Kochi Consumer Commission Directs United India Insurance to Pay Rs 35,000 Compensation
The Ernakulam District Consumer Disputes Redressal Commission has issued a significant order against United India Insurance Company, mandating the payment of Rs 35,000 as compensation. This ruling addresses deficiency in service and unfair trade practices stemming from prolonged delays in settling insurance claims.
Background of the Complaint
The case originated from a complaint filed by Jabeen L Zacharias, who had insured her office building, furniture, and electronic equipment under a compact policy from United India Insurance Company Ltd. The policy was active from April 26, 2009, to April 25, 2010. In early February 2010, a sudden electrical fault or short circuit caused damage to multiple electronic items in the office.
Upon discovering the damage, the complainant immediately notified the insurance agency. Following the insurer's instructions, she segregated irreparable items for inspection and obtained repair estimates for the others. However, the inspection process faced significant delays, leading to the office being closed on February 6, 2010.
Escalation of Issues
When the office reopened, a break-in and theft were discovered, prompting the filing of a police complaint. In total, four claims were lodged with the insurance company. The complainant proceeded with repairs as advised, but the insurer's response was inadequate.
After months of silence, the insurance company denied the theft claim. More critically, it failed to make decisions on the remaining three claims, repeatedly citing delay as a reason despite the complainant's persistent reminders and intimations.
Commission's Ruling and Directions
The consumer commission found United India Insurance Company liable for the delays and lack of action. In its order, the commission emphasized that the opposite party must fulfill the directives issued. The awarded compensation of Rs 35,000 is to be paid within 30 days from the date of the order.
This decision underscores the importance of timely and fair claim settlements in the insurance sector, reinforcing consumer rights under Indian law.
