Chandigarh State Commission Holds Reliance General Insurance Co. Liable For Failure To Reimburse Claims For Delay Of Luggage

Brief Facts:

The Complainants purchased an insurance policy from Reliance General Insurance Co. Ltd. (“Insurance Company”) during their trip to Bangkok. The insurance covered late delivery or loss of luggage, with a provision stating that if the luggage was delayed by more than 12 hours, each Complainant would be entitled to $500. The Complainants alleged that their belongings, booked from Delhi, were received two days late in Bangkok. This caused severe inconvenience and distress to them. Despite emails and personal visits by one of the Complainants to the Insurance Company's office, the insurance claim for the delay remained unpaid. Feeling aggrieved, the Complainants filed a consumer complaint in the District Consumer Disputes Redressal Commission -I, U.T. Chandigarh (“District Commission”).

In response, the Insurance Company contended that only one of the complainants, Dharta Devi, had lodged a claim with them, and no other claim had been made. They argued that all baggage tags and reports were in Dharta Devi's name, and she failed to provide necessary documentation, such as bills and receipts for emergency purchases. The Insurance Company further emphasized that they were only liable for emergency purchases of toiletries, medication, and clothing, as per the insurance policy's T&C. It asserted that the complaint was premature due to the Complainants' failure to provide essential documents.

Upon reviewing the pleadings and evidence, the District Commission ruled in favour of the Complainants. The Insurance Company was directed to pay $500 to each Complainant and pay Rs. 10,000/- as compensation. Aggrieved by this decision, the Insurance Company filed an appeal in the State Consumer Disputes Redressal Commission, U.T. Chandigarh (“State Commission”).

Observations by the State Commission:

The State Commission found that the District Commission had partially erred in its decision. It was noted that the District Commission failed to fully appreciate the documentary evidence, leading to incorrect findings. The Complainants had purchased an insurance policy from the Insurance Company, covering late delivery or loss of luggage, with a provision of $500 compensation for delays exceeding 12 hours. All respondents were covered under this policy after paying a premium of ₹599.91 each.

It was observed that only 'four' bags of luggage, containing belongings of all six respondents, were delivered in Bangkok with a delay exceeding 12 hours, as per the records. The District Commission correctly identified the deficiency in service by the Insurance Company. However, it erred in directing payment of $500 to each of the 'six' Complainants, contrary to the evidence which showed a delay of only 'four' bags. Thus, the State Commission modified the order to direct payment to the Complainants for the delay in delivery of only four bags at the rate of $500 each, along with 9% interest from the date of filing the complaint.

Additionally, the State Commission ordered the Insurance Company to pay a composite amount of ₹10,000 to the complainants as compensation for mental agony, harassment, and litigation costs.

Case Title: Reliance General Insurance Co. Ltd. and Anr. vs Ritika Virdi and Others

Case No.: Appeal No. A/309/2023

Advocate for the Appellant/Insurance Company: Shri RC Gupta

Advocate for the Complainants: Shri Rahul Dev Singh

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