Insurance firm fined for rejecting accident claim

  • HT Correspondent, Hindustan Times, CHANDIGARH
  • Updated: May 13, 2014 21:13 IST

The District Consumer Disputes Redressal Forum on Tuesday slapped a penalty of Rs 3.10 lakh on an insurance company for rejecting accident claim to a Hisar resident. The firm, Reliance General Insurance, has been directed to pay an interest of 9%.

Following a complaint filed by Dharamender, the consumer forum directed the company to pay the interest from October 2010 till its actual payment, besides paying `10,000 as cost of litigation.

Dharamender in his complaint said he had met with an accident in June 2010 and got his dumper insured with the company. He claimed that after getting the vehicle repaired, he asked for the accident claim from the insurance company but the firm rejected it. He alleged that the insurance company “illegally and wrongly” repudiated the claim.

Reliance General Insurance sought dismissal of the complaint justifying rejection of the claim. The insurance company said the claim had been rejected as the vehicle did not have a route permit. They claimed that the tax paid to Haryana was not equivalent to a route permit.

Unimpressed by the submissions, the consumer forum presided over by PL Ahuja, on May 12 held, “the vehicle in question was commercial and it was also insured with the insurance company as commercial vehicle, therefore, the objection of the insurance company that the vehicle was being plied for hire and reward at the time of accident, is vague.”

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