Jalandhar District Consumer Disputes Redressal Commission has pulled up the National Insurance Company Limited for withholding a scooter theft claim for years despite approving it, observing that procedural objections cannot be used to indefinitely delay payment to a consumer.
The case was filed by Bharat Sehgal, a resident of Sehgalan Mohalla, Khingra Gate, Jalandhar, whose Honda Activa scooter was stolen in 2019.
The Commission directed the insurer to pay Rs 29,900 to complainant Bharat Sehgal, along with 6 per cent annual interest from the date of approval of the claim till its realisation. It also awarded Rs 15,000 as compensation for mental harassment and Rs 8,000 towards litigation expenses.
According to the complaint, his scooter was stolen from outside his house on September 23, 2019. The matter was reported to Police Station Division No 3, Jalandhar, following which an FIR under Section 379 of the IPC was registered. Despite investigation, the vehicle could not be recovered and police later submitted an untraced report.
Sehgal had insured the scooter with National Insurance Company for the period between January 26, 2019 and January 25, 2020. However, the claim was allegedly not settled even after submission of the required documents.
During proceedings, the insurer argued that the complainant had failed to submit the second key of the vehicle and had also not transferred the registration certificate in the insurer’s name.
The company further pointed out that another insurance policy had later been issued for the same vehicle by HDFC ERGO General Insurance Company after the theft, raising suspicion over the claim.
However, the Commission observed that non submission of the second key was merely a procedural issue and there was no evidence to suggest any involvement of the complainant in the theft or any breach of policy conditions.
“The production of keys are procedural in nature and if the claim of the complainant is genuine on the basis of theft, it cannot be rejected merely on the ground that the key was not produced,” the Commission noted in its order.
The Commission further observed that National Insurance had itself approved the claim on a non-standard basis for Rs 29,900 but still failed to release the payment despite repeated correspondence.
At the same time, the Commission dismissed the complaint against HDFC ERGO, observing that the subsequent policy had been issued online on the basis of details available on the portal and there was no evidence of misrepresentation by the complainant.
The insurers have been directed to comply with the order within within 45 days from the date of receipt of the copy of order.
