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Consumer Court: Insurance Claim can't be denied on the ground of delay in reporting Theft

Team SoOLEGAL 30 Jun 2020 3:17pm

Consumer Court: Insurance Claim can't be denied on the ground of delay in reporting Theft

On January 25, 2016, a vehicle of Satish R, who is the petitioner, got stolen from his locality and after knowing about the theft of his vehicle he immediately informed the incident to Attibele police station.

After a thorough search and interrogating the people nearby, the owner of the vehicle reported about this theft to Reliance General Insurance Company Limited and also informed to the company that his vehicle was insured for a monthly premium of Rs. 1,223/-. But the insurer company wanted to see the FIR of the theft, and only after that the company will take the proceedings further.

On February 29, 2016, that is a month after from the date of theft, the owner of the vehicle managed to obtain the FIR and also the details of the investigation which states that the said vehicle is untraceable and thus the owner of the vehicle submitted all the documents to the insurance company and claimed a total sum of Rs 38000/-.

According to the company, the customer, that is the owner of the said vehicle, was very late in informing about the theft of his vehicle to the insurer company and thus it violated the policy and terms and conditions of the company and because of this delay the company had faced various problems regarding the said theft. The claim was dismissed and notified the customer that he had breached the insurer’s timely notification of theft policy.

The owner of the vehicle on November 16, 2017, filed a complaint in IVth Additional District Consumer Forum in Bangalore.

According to the Judges, the customer must get compensation from the insurance company as he used to pay regular dues to the insurance company. The Supreme Court ruled that delay in informing is not appropriate in cases where a person has actually lost his / her vehicle and there is a confirmed police report.

Thus the Court held that the insurer company is liable to pay the compensation to the owner of the vehicle with 7% interest along with Rs 10000/- for litigation expenses within 45 days.



Tagged: Consumer Court   Insurance Claim   Reliance General Insurance Company Limited   FIR   Supreme Court   District Consumer Forum  
Did you find this write up useful? YES 8 NO 0
Nawal kumar tank   1 Jul 2020 7:17am
This is very useful for me because I am suffering same condition
Reply
Nawal kumar tank   1 Jul 2020 7:17am
This is very useful for me because I am suffering same condition
Reply
Nawal kumar tank   1 Jul 2020 7:17am
This is very useful for me because I am suffering same condition
Reply
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