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Consumer panel rejects insurance firm’s appeal

CUTTACK: The Orissa Consumer Disputes Redressal Commission has turned down an appeal of an insurance company and asked it to pay the claims for the accident and damage of an insured vehicle. The New India Assurance Company had earlier refused to pay the claims to the owner of the vehicle saying there was more number of passengers than the approved standard in the vehicle at the time of the accident.

The commission acting president Subash Mahtab and member Basanti Devi directed the insurance company to pay the claimed amount of Rs. 99,850 to one Dilip Kumar Khandelwal of Baripada in Mayurbhanj district by March 9, 2008 failing which the amount would carry an interest of 9 per cent per annum, the commission said.

The fact of the case was that Dilip Kumar had insured his new vehicle with the insurance company in February 2002 and the policy was in force till February 2003. But in June 2002, the vehicle met with an accident and was badly damaged.

A police case was registered and the insurance company was informed of the accident.

But the insurance company refused to repudiate the claim of the owner saying the terms of the insurance were violated at the time of accident. “Instead of three persons, at least four persons were travelling in the vehicle when it met with the accident,” said the insurance company.

Dilip Kumar, however, approached the Mayurbhanj district consumer court against the insurance company’s refusal to pay the claims. The district forum after hearing the case decided in favour of the vehicle owner and directed the insurance company to pay the claim of Rs. 99,850, compensation of Rs. 1,000 and another Rs. 500 towards the cost of the case.

Peeved over the district forum’s judgment, the insurance company had come in an appeal to the State consumer commission.

Turning down the appeal of the company, the State consumer panel upheld the judgment passed by the district forum.

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