Insurance firm ordered to pay 19L for burnt car

Ludhiana: The District Consumer Disputes Redressal Commission has ordered a car insurance company to pay over Rs 19 lakh to a person whose high-end BMW was completely burnt after catching fire. The insurance company had rejected the claim, citing that the fire was not “accidental in nature.”
The commission also ordered Digit Private Car Package Policy Insurance Company, Chandigarh, through its manager, to pay Rs 20,000 as compensation to the applicant within 30 days from the receipt of the order.If the company fails to comply, the applicant will be entitled to interest at the rate of 8% per annum from the date of the order until the actual payment is made.

According to the complainant, he purchased the policy valid from April 18, 2019, to April 17, 2020. Unfortunately, on June 24, 2019, at around 8:30 pm, the car caught fire and was completely damaged. A call was made to the fire brigade, and a general diary document (GDD) was lodged at Raikot police station. The fire station in Jagraon issued a certificate regarding the fire services provided to extinguish the car fire. The complainant said he “managed to save his life with great difficulty”.
The complainant also handed over the second key to the insurance company and completed the formalities by submitting the claim form and other relevant documents. However, the insurance company declined the claim via a letter dated September 24, 2019. He initially lodged a claim with the insurance company for the loss of Rs 18,40,125 for his car. However, as the firm failed to pay the claim despite his repeated requests, he revised the claim to Rs 19,45,328.75, including interest and compensation.
The insurance company said a forensic investigation was conducted, which suggested “we do not find any features or signs on the vehicle to determine that the cause of the fire is accidental. The cause of the fire cannot be accidental.”