‘Prolonged inaction’: Insurance co to pay 10L over vehicle theft

Raipur: The Chhattisgarh State Consumer Disputes Redressal Commission upheld a district commission order directing National Insurance Company Ltd to pay the insured value of a stolen vehicle to a Bhilai resident, observing that the insurer's prolonged inaction and repeated objections clearly amounted to deficiency in service and unfair trade practice. Dismissing the insurer's appeal, a bench comprising commission president Justice Gautam Chourdiya and member Pramod Kumar Varma affirmed the order of the District Consumer Disputes Redressal Commission, Durg, which directed the company to pay Rs 10 lakh towards the insured declared value (IDV) of the vehicle, along with Rs 1 lakh as compensation for mental agony and Rs 5,000 as litigation costs. The state commission also imposed Rs 10,000 as appeal costs.According to the case record, complainant Vimal Sahu insured his truck for the period between Dec 2015 and December 2016. The vehicle was allegedly stolen on the night of June 25, 2016, after it was parked near his office in Bhilai. An FIR was lodged the following day, and the theft was promptly reported to the insurer. Despite submission of documents and vehicle keys, the claim remained unsettled for years, forcing the complainant to approach the consumer forum.The insurer contended that certain documents, including a duly filled claim form, transfer forms, permit, and other papers, were not submitted by the complainant. It argued that failure to provide the original keys and maintain proper security of the vehicle violated the insurance contract.However, the commission noted that the insurer acknowledged receiving a letter from the complainant in Nov 2019, along with multiple enclosures, including keys, an FIR copy, and other vehicle documents. The bench observed that the insurer failed to produce any evidence to show that the keys submitted were not original or that the required documents were not provided.