No More A Consumer In Insurance Claim If Car Is Sold To 3rd Party, Chandigarh District Commission Dismisses Complaint Against Future Generali

Brief Facts:

The Complainant owned a car which was insured by Future Generali India Insurance Co. Ltd (“Insurance Company”) with a policy valid from 8.1.2023 to 7.1.2024, having an Insured Declared Value (IDV) of ₹ 4,24,000/-. Following an accident on 24.2.2023, the car, with significant exterior damage, was taken to M/s Joshi Autozone, Chandigarh, where repair work was impeded due to the absence of a cashless tie-up with the insurance company. Instead, the workshop offered to repair the car. The surveyor of the insurance company assessed the repair cost at ₹ 1,60,000/- and declared it as a total loss for salvage. The Complainant alleged that the insurance company, with malicious intent, sought to declare the car a total loss for salvage to sell it at an inflated price. The Complainant eventually got the car repaired from the workshop and paid ₹ 1,20,000/-.

The Complainant communicated with the insurance company through a WhatsApp message and later sent a legal notice demanding a refund. The insurance company, in response, was only willing to pay ₹ 30,000/-, assessed on a net salvage basis, and claimed that the Complainant gave consent through an affidavit to settle at that amount. Despite the Complainant sending a registered letter for final payment, no resolution was reached. Feeling aggrieved, the Complainant approached District Consumer Disputes Redressal Commission-I, U.T. Chandigarh (“District Commission”) and filed a consumer complaint against the insurance company, the surveyor, and the workshop.

In response, the insurance company acknowledged the insurance of the car but claimed the accident caused damages exceeding 75% of the IDV, resulting in a total loss. The surveyor recommended settling the claim on a net salvage basis, and the insurance company, in agreement with the Complainant, settled at ₹ 30,000/-. It alleged the Complainant got the car repaired without informing them, violating the earlier settlement agreement, and without submitting repair invoices for the ₹ 1,20,000/- payment.

The surveyor and the workshop didn't appear before the District Commission for the proceedings.

Observations by the District Commission:

The District Commission noted that the Complainant had earlier settled the claim with the insurance company on a net salvage basis. However, the record indicated that the Complainant proceeded to repair the subject car and subsequently sold it to a third party without notifying the insurance company. This crucial fact, according to the District Commission, undermined the Complainant's entitlement to the claimed amount of ₹ 1,20,000, particularly as he no longer qualifies as a consumer after selling the car.

The District Commission noted the Complainant's failure to disclose the sale of the vehicle during the appeal process, along with the absence of permission or notification to the District Commission. Consequently, the District Commission dismissed the complaint.

Case Title: Vijesh Bahadu vs Future Generali India Insurance Co. Ltd and Anr.

Case Number: CC/342/2023.

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