Firm fined Rs 4 lakh for failing to pay motor insurance claim to Panchkula resident

CHANDIGARH: The district consumer disputes redressel forum directed Future Generali India Insurance Company in Sector 8 Chandigarh to pay Rs 23,000 as compensation for failing to provide claim to a Panchkula resident whose car had caught fire due to spark in the engine. They were also directed to pay the claim amounting to Rs 3.90 lakh.
Complainant Tanvi Sharma, a resident of Sector 4 Panchkula in her complaint to the cops stated that on May 19, 2018, when she was travelling to Panchkula with her family at about 9.30pm, her car suddenly caught fire due to sparking in the front portion and the vehicle was totally damaged in the incident. Fire brigade was also called on the spot and matter was reported to the police, who lodged a DDR. The insurance company was also intimated about the loss caused to the car in question. The surveyor appointed by the insurance firm also inspected the damaged vehicle.
While processing the claim, the insurance company intimated the complainant that there was a claim in the previous policy, which expired on April 19, 2018 and the amount claimed as 20% ‘No Claim Bonus’ (NCB), on the renewal policy is to be recovered at an additional premium amounting to Rs 911. Thereafter, the complainant contacted the insurance company for deposit of premium as demanded on May 22, 2018, but they refused to accept the amount, she alleged.
Thereafter on June 1, 2018, the insurance company rejected the claim of the complainant on the ground that on confirming the NCB from the previous insurer, it was found that there was a claim settled on the said previous policy and the complainant has misrepresented the fact to avail NCB of 20% from the insurance company. The complainant told the insurance company to settle the claim and to receive the ‘no claim bonus’ and inspection charges, as desired and that there is no misrepresentation as it can be an online mistake, but the insurance company did not pay any heed.
In its reply, the company stated that the complainant has misrepresented the facts to avail NCB of 20% from the answering insurance company, whereas she had availed a claim from previous insurer i.e. Universal Sompo General Insurance Company and did not inform the same to them while availing the policy in question.
Complainant however, stated that the insurance company never obtained declaration from her regarding the claim previously claimed by her from earlier insurance company.
The forum noted that insurance company “failed to rebut this contention of the complainant by way of producing on record any cogent evidence wherein the complainant had given any wrong declaration on the date of signing of declaration regarding claim previously claimed by her from earlier insurance company.” Thus, this objection of the firm was rejected and they were directed to pay up.