An insurance company cannot reject a claim against theft of vehicle on the grounds that the owner does not yet hold a valid registration certificate, a consumer forum here has ruled, directing United India Insurance to pay `20,000 as compensation to a Kajheri resident besides the declared value of `43,864.
Holding the firm deficient in services, the forum also ordered that Pradeep Kumar be paid `7,000 as cost of litigation. "The law on the subject is clear that the insurance company is not entitled to repudiate the claim on the ground that the vehicle had not been registered," observed the district consumer disputes redressal forum, Chandigarh, in its September 10 order, terming the claim rejection "totally unjustified and illegal".
Pradeep Kumar had moved the forum saying that he had got his Honda Activa scooter that had a temporary registration number at the time, insured from United India Insurance Company Limited in June 2012.
The scooter was stolen on July 3, 2012, from the parking area of the lake in Sector 42 when he had gone for a walk, and the FIR was registered by the police on July 7. He added that the insurance company was also immediately informed about the theft, and it had assured of settling the claim after receipt of an 'untraced' report from the police.
Justifying the repudiation, the firm told the forum that the complainant had violated the terms and conditions of the policy by not getting his vehicle registered. Further, the company submitted that the FIR had been lodged four days later. However, the forum held that, as per police records, the intimation of theft was given on the same day.