Insurance company

Ludhiana Consumer Disputes Commission Sanctions Insurance Company for Deficient Service

Following a complaint filed with the Ludhiana Consumer Dispute Resolution Commission, regarding the release of an accident claim, an insurance company was ordered to reimburse the complainant and pay a 8,000-compensation for deficient service

ThroughHV correspondentLudhiana

The District Consumer Dispute Redress Commission ordered National Insurance Company Limited to release an accidental claim of 2 lakh and pay 8,000 compensation to Naresh Kumar Jain of Rishi Nagar, who had filed a complaint for deficient services.

In his complaint, Jain claimed that the repudiation of the request, of 2 lakh soared after an insured car met with an accident, got it wrong and amounted to lack of service from the insurance company.

A company expert had inspected the car after the crash, but no damage claims had been paid.

The insurer reasoned that the plaintiff company had no insurable interest in the car because one of the company’s associates had gifted the car to his daughter and handed over possession of it in 2006. The insurer had further stated that the same was confirmed by Vipul Jain, son of Rajesh Chander Jain, signing officer of the complainant company.

The Commission, in its order, observed that the insurance company had accepted the complainant company’s annual insurance premium.

“To prove the allegation that the car was offered in 2006, no documentary evidence was filed and the insurance company relied on only one piece of evidence. Therefore, on the sole basis of the unproven allegations that the car was gifted to the daughter of one of the plaintiff company’s associates, the claim cannot validly be dismissed where the plaintiff company continues to be the registered owner of the car and has been regularly insured “, we read in the order.

The Commission further added that the insurance company must examine and reimburse the claim relating to the car according to the terms and conditions of the policy and also pay an additional 8,000 allowances.

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