Violations Constitute Fundamental Breach to Deny Insurance Claim NCDRC Holds Bharti General Insurance Liable Deficiency in Service (Consumer Case)
The complainant insured their vehicle with Bharti Axa General Insurance, but the vehicle was stolen. After filing an FIR and submitting the required documents and key to the insurer, the claim was rejected.
The complainant then approached the District Forum, which ruled in their favor, ordering the insurer to pay Rs. 7,07,513 with 9% interest. The State Commission of Rajasthan upheld this decision on appeal, leading the insurer to file a revision petition before the National Commission.
The National Commission focused on whether leaving the key in the vehicle constituted a fundamental breach of the insurance policy, justifying the insurer’s denial of the claim. While the insurer argued that this violated Condition No. 4 of the policy, the Commission questioned whether leaving the key in the ignition directly caused the theft, especially since the theft occurred soon after the driver left the vehicle.
Citing a prior case, the Commission noted that leaving a vehicle unattended with the key in the ignition does not automatically increase the risk of theft. Acknowledging the complainant’s carelessness, the Commission concluded it was not a fundamental breach. The revision petition was dismissed, and the decisions of the District Forum and State Commission, directing the insurer to pay 75% of the insured amount, were upheld.
Source: – Live Law
By: – Rajat Ranjan
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