Central Kolkata District Commission Holds National Insurance Co. Liable For Repudiating Claim On Mere Delay In Reporting

Brief Facts:

The Complainant owned a TATA Truck. The truck was insured with National Insurance Company Ltd (“Insurance Company”) with an annual premium of Rs. 28,436/-. During the subsistence of the policy, the truck was reported to be stolen and a police complaint was registered for the same. The Complainant notified the Insurance Company which requested additional documentation and investigation. Ultimately, it repudiated the claim on grounds of alleged policy violations. Feeling aggrieved, the Complainant filed a consumer complaint in the District Consumer Disputes Redressal Commission-II, Central Kolkata (“District Commission”) against the Insurance Company.

The Insurance Company argued that the allegations of mishandling the claim were baseless and the application appeared motivated and false. It contended that the Complainant had no valid cause of action in the matter and sought dismissal of the application.

Observations by the District Commission:

The District Commission noted that the incident occurred during the night of 29.09.2015 when the driver parked the vehicle in front of the garage. By the morning of 30.09.2015, it was discovered that the vehicle was stolen. The driver promptly reported the theft to the local Police Station on 01.10.2015, immediately following the incident. While there was a delay of 13 days in informing the Insurance Company about the incident, the District Commission noted that the local police were informed immediately. Therefore, it held that the delay in notifying the Insurance Company should not invalidate the claim, especially when the claim itself was genuine. It was held that the Insurance Company cannot arbitrarily repudiate a claim on grounds of delayed intimation by the Complainant.

Therefore, the District Commission held that the Insurance Company unjustly repudiated the Complainant's claim, indicating a service deficiency. The Insurance Company was directed by the District Commission to reimburse the insured value of the subject vehicle, amounting to Rs. 5,00,000/-, to the Complainant within 45 days. Additionally, the Insurance Company was ordered to pay compensation of Rs. 1,00,000/- to the Complainant.

Case Title: Kapil Deo Singh vs National Insurance Co. Ltd.

Case Number: CC/306/2018

Date of Pronouncement: 24th June 2024

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