Failure To Reimburse Full Amount, Kurukshetra District Commission Holds Bajaj Allianz General Insurance Co. Liable For Deficiency In Service

Brief Facts:

Mr. L.D. Kamboj (“Complainant”) owned a car which was insured through an online policy issued by Bajaj Allianz General Insurance Company Limited (“Insurance Company”). The insurance assured full coverage of the vehicle of repair expenses in case of any mishap or accident. Later, while the Complainant parked the vehicle near SD Farm, Dhand, it was hit by a truck in a rash and negligent manner which caused substantial damage to the vehicle. Despite reporting the incident to the local police, the police declined to complain about hit and run case due to the unavailability of the truck's number. The Complainant promptly informed the insurance company about the incident. The surveyor of the insurance company informed the Complainant to leave the damaged car with Shivalik Motors (“Service Center”) for repair.

Following these instructions, the Complainant sent the vehicle to the service centre, who retained it and issued an invoice amounting to Rs. 19,343/- for the repairs. Subsequently, the Complainant claimed reimbursement from the insurance company for the repair costs incurred by him. The insurance company reimbursed Rs. 12,382/- but didn't pay the remaining amount of Rs. 6,961/- to the Complainant. The Complainant, after numerous visits to the office of the insurance company, didn't receive a satisfactory response from the insurance company. Thereafter, the Complainant approached the District Consumer Disputes Redressal Commission, Kurukshetra, Haryana (“District Commission”) and filed a consumer complaint against the insurance company and the service centre.

Despite receiving notice, the insurance company failed to appear before the District Commission. On the other hand, the service centre contested the complaint, raising preliminary objections regarding maintainability, cause of action, misjoinder, non-joinder of necessary parties, and concealment of material facts. Therefore, the service centre pleaded for dismissal of the complaint against the insurance company and the service centre.

Observations by the Commission:

The District Commission noted that the insurance policy was cashless and held that it was obligatory on the part of the insurance company to fully cover the repair expenses, including the remaining amount of Rs. 6,961/-. Consequently, the District Commission held the insurance company liable for deficiency in service.

In light of this finding, the District Commission directed the insurance company to promptly pay the outstanding amount of Rs. 6,961/- to the Complainant. Furthermore, the District Commission ordered the payment to include interest at the rate of 9% per annum, calculated from the date of the accident until the actual realization of the payment. Additionally, the District Commission directed the insurance company to pay a compensation of Rs. 5,500/- to the Complainant.