Consumer Case Bharti AXA General Insurance
The complainant purchased a Volkswagen Vento for Rs. 9,50,500 and insured it with Bharti AXA General Insurance, then switched to United India Insurance for the second year, paying a premium of Rs. 26,246.
After the car was damaged in an accident on 25.11.2016, the insurance company initially estimated compensation of Rs. 8,00,000, later reducing it to Rs. 7,00,000, and then offering only Rs. 3,43,000 in May 2017, with the remaining amount to be paid later. Despite repair costs of Rs. 6,50,000 and repeated follow-ups, the insurance company forfeited the policy.
The District Commission ruled in favor of the complainant, ordering the insurer to pay the full car value with interest and litigation costs. Dissatisfied, the insurance company appealed to the Uttarakhand State Consumer Disputes Redressal Commission. The Commission noted that the complainant received a 20% No Claim Bonus of Rs. 4,909.09 from the previous insurer, Bharti AXA General Insurance.
Based on the survey report, the repair cost was Rs. 5,32,676, but the No Claim Bonus needed to be deducted. Citing a precedent from New India Assurance Company Limited vs. Shinder Pal Singh, the commission applied the principle of equity, reducing the claim by 20% due to the lower premium paid. As a result, the net amount to be paid was reduced to Rs. 4,26,140, and the District Commission’s awarded amount of Rs. 9,50,500 was modified accordingly.
Source: – Live Law
By: – Rajat Ranjan
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