The District Consumer Disputes Redressal Commission, Vijayapur (Karnataka), led by Shri Ambadas Kulkarni and Smt. V.B. Mutalik Desai, has held Reliance General Insurance Co. Ltd. accountable for failing to pay a valid claim related to a car accident. The Commission found that the accident and resulting damage were verified, and the insurance claim should have been honored.
Case Summary:
The complainant owned a car insured under a commercial package policy with Reliance General Insurance Company, which was valid from June 27, 2021, to June 26, 2022. On December 13, 2021, the car was involved in an accident, and an FIR was filed at the local police station. The complainant promptly reported the accident to the insurance company and followed their instructions to submit all necessary documents.
Despite this, the insurance company repudiated the claim, citing a delay in reporting the accident. The complainant had informed the insurance company on December 14, 2021, and after three days, was asked to provide further documents. The car was estimated to need repairs costing Rs. 5,81,198/-, which the complainant had documented. Displeased with the non-settlement, the complainant filed a consumer complaint with the District Commission.
The complainant argued that the insurance company had full knowledge of the accident and should not have repudiated the claim without proper verification. A legal notice was sent demanding settlement, but the insurance company did not respond or settle the claim.
The insurance company countered that the complainant had reported the accident on May 17, 2022, which was 170 days post-incident, violating the policy’s reporting condition. They also alleged that the vehicle was used on a public road without a valid permit and that the driver lacked a valid license, breaching policy terms.
Commission’s Findings:
The District Commission confirmed that the insurance policy was valid at the time of the accident. It was also established that the vehicle sustained damage and required repairs costing Rs. 5,81,198/-, although the insurance company did not dispute the occurrence of the accident or the damage.
A surveyor’s report assessed the repair cost at Rs. 3,44,188/-, which the complainant contested but did not disprove. The Commission found the surveyor’s report credible and therefore ruled that the complainant was entitled to Rs. 3,44,188/- for repairs.
Decision:
The District Commission partially upheld the complaint, ordering the insurance company to pay Rs. 3,44,188/- for repairs, Rs. 5,000/- for mental agony, and Rs. 2,000/- for legal costs.
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