Insurance Company Not Liable For Wilful And Deliberate Damage Caused By Insured, Gurgaon District Commission Dismisses Complaint

Brief Facts:

The Complainant owned a car which was insured by National Insurance Company Ltd. (“Insurance Company”). One day, his son drove the car through a water-filled underpass in Gurugram, during the rainy season. The car got stuck due to the high water flow, and after unsuccessful attempts to start it, the Complainant's son left the car in the underpass and informed the Insurance Company, after approximately 2½ hours. Subsequently, the Insurance Company conducted a survey and reported the matter to Platinum Motor Corp. Pvt. Ltd., which later arranged for the car to be pulled out using a crane. The Complainant was informed that the damages amounted to Rs. 85,978/-. Therefore, he submitted the claim to the Insurance Company. However, the Insurance Company repudiated it. Feeling aggrieved, the Complainant approached the District Consumer Disputes Redressal Commission, Gurgaon (“District Commission”) and filed a consumer complaint against the Insurance Company.

In response, the Insurance Company argued that the loss and damage to the car did not result from an accident but from the gross negligence of the Complainant's son, who knowingly drove the car into the water-logged underpass. Therefore, it claimed that such negligence on the part of the insured absolved the Insurance Company of liability for the loss. Additionally, it highlighted that the surveyor appointed by it concluded that the claim was not maintainable as the car was deliberately taken into the water-filled underpass, knowing it would cause damage.

Observations by the District Commission:

The District Commission held that the claim amounting to Rs. 85,978/- submitted by the Complainant regarding the damage sustained by the insured car was legitimately and justifiably rejected by the Insurance Company. It held that the Complainant's son deliberately drove the vehicle into the underpass, knowingly encountering a high flow of water. His conscious and intentional decision to navigate the vehicle through the water-logged underpass directly led to the loss and damage experienced by the insured car. It held that this action cannot be categorized as accidental; rather, it constituted a deliberate and wilful act on the part of the Complainant's son.

The District Commission held that the damage sustained by the car was not a result of accidental circumstances but rather stemmed from the intentional and wilful actions of the Complainant's son. Therefore, the District Commission dismissed the consumer complaint.

Case Title: Rohtash Singh vs National Insurance Company Ltd. and Anr.

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