Insurance firm must pay, says panel 

 HYDERABAD: Striking off an insurance major’s argument that ‘certain claims are not covered under policy’, Hyderabad Consumer Forum - III on Friday directed the company to compensate a hassled consumer. Rajashekhar Nethi, a 27-year-old private employee who had his car insured by HDFC Ergo General Insurance, met with an accident recently.

A dog hit his vehicle damaging his car’s AC compressor unit among other things. Nethi has been paying `12,323 as insurance premium every year.  When Nethi approached the service centre, he was informed that the costs for AC compressor will not be covered under the general insurance scheme. His total bill amounted to `52,021

The authorised officer of the insurance company declined the consumer’s plea despite being informed that the AC compressor was damaged not as a consequence of mechanical breakdown, but due to an accident. Meanwhile, the insurance company, in its defense, said that the surveyor did not find any external impact to the compressor that could have caused the damage.

However, the court held that the policyholder ought to be indemnified in the event of an accident sustained by the vehicle. “The firm has been directed to pay `16,145 for the damages along with `20,000 as compensation for deficiency of services and `5,000 towards court charges. The firm has been asked to comply with the order within thirty days.

What the court order reads
The denial to indemnify the costs of the AC compressor is unjust and improper. The insurance company is liable for deficiency of services putting the complainant to much anxiety and mental agony