Negligently Leaving Keys Inside Car Contributed To Theft, Not Entitled For Insurance Amount: Ambala District Commission Dismisses Complaint

Brief Facts:

The Complainant bought a second-hand Maruti Suzuki Swift Dzire LDI (“Car”) and registered it in his own name. The Car was insured with United India Insurance Company Ltd. (“Insurance Company”) with an Insurance Declare Value (“IDV”) of Rs. 2,00,000/-, for which the Complainant paid a premium of Rs. 7268/-. During the subsistence of the policy, the Complainant and his brother went for shopping and parked the Car outside the market. The Complainant's brother left the key in the car momentarily, and within moments, an unknown person stole the vehicle. Despite their efforts to locate it, the car remained missing, leading to the filing of an FIR.

The Complainant submitted the FIR and other necessary documents to the insurance company for an insurance claim. However, despite repeated visits and constant communications, the insurance company delayed the settlement. Feeling aggrieved, the Complainant approached the District Consumer Disputes Redressal Commission, Ambala, Haryana (“District Commission”) and filed a consumer complaint against the insurance company.

In response, the insurance company contended that the Complainant failed to inform it about the alleged theft promptly and never lodged any claim. Further, the Car was not registered in the Complainant's name and his own negligence contributed to the theft of the Car. The insurance company also highlighted the delay in informing the police about the theft and the absence of a Daily Diary Report (“DDR”).

Observations by the District Commission:

The District Commission noted that the Complainant himself admitted in the complaint that his brother negligently left the key in the car, which subsequently facilitated the theft by an unidentified person.

Moreover, the District Commission observed that although the vehicle was stolen on 24-02-2021, the Complainant only reported the incident to the police on 25-03-2021. It held that this unexplained delay of over 30 days in lodging the FIR concerning the theft raises significant concerns. The District Commission referred to the decision of the Supreme Court in Kanwarjit Singh Kang vs. M/s ICICI Lombard General Insurance Co. Ltd. & Anr., where the Supreme Court upheld the rejection of an insurance claim due to a similar delay in lodging the FIR, especially considering the negligence of leaving the ignition keys in the vehicle.

The District Commission held that the Complainant's negligence and carelessness, evidenced by leaving the keys in the vehicle, significantly contributed to the theft. Had such negligence not occurred, the theft might have been prevented. Therefore, the District Commission held that the Complainant's conduct constituted a fundamental breach, making him ineligible for relief in the consumer complaint regarding the theft of his vehicle. Consequently, the District Commission dismissed the complaint.

Case Title: Kaptan vs United India Insurance Company Ltd.

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