Delayed Intimation to Insurer Not Warrant Total Rejection of Claims Delhi State Commission Holds New India Assurance Liable Deficiency in Service (Consumer Case)
A poor villager, who had purchased a tractor with financing from the State Bank of India and insurance from an insurer, faced financial difficulties due to drought and moved to Delhi.
During his stay, the tractor was stolen, and an FIR was filed. Despite notifying both the bank and insurer, no action was taken. The complainant filed a writ petition, leading to a court order directing the insurer to resolve the issue, but it was ignored. A complaint to the District Consumer Commission was dismissed on jurisdiction grounds, and the complainant, still without insurance payment, appealed to the State Commission of Delhi.
The State Commission reviewed whether the District Commission erred in dismissing the complainant’s case due to delayed Intimation of the theft of an insured tractor. Despite a delay in notifying both the police and insurer, the complainant had filed an FIR, and the police report classified the case as “untraceable.”
Citing precedents where delays in intimation did not automatically lead to claim rejection, the Commission determined the theft was undisputed and the claim should be considered on a non-standard basis. The State Commission overturned the District Commission’s dismissal, directing the insurer to pay 50% of the Insured Declared Value.
Source: – Live Law
By: – Rajat Ranjan
