The state consumer commission dismissed a complaint against an insurance company with regard to its repudiation of a claim, by considering the disclaimer clause policy and law of limitation.
The commission held that though the clause policy allows for a period of one year to file a complaint, the law of limitation says that the complainant can move for claims within two years from the date of repudiation.
The commission was hearing the appeal filed by the United India Insurance Company Ltd. against the order passed by the district consumer forum (DSF), south Mumbai. The DSF had held the company guilty for deficiency in service of repudiation of a claim of city-based shopkeeper, Japjeet Chadda, who runs an electronic goods shop in Girgaum.
Chadda alleged that his shop was insured against burglary and housebreaking under a special policy. Following a theft in his shop on the night of January 20, 2003, Chadda filed for claim with the insurance company. The company, on the basis of a surveyor’s report, repudiated Chadda’s claim on March 29, 2004. Chadda moved a complaint two years later on June 16, 2006.
Advocate AS Vidyarthi contended on behalf of the insurance company that the complaint was false and argued that it is barred by the limitation. The state commission after hearing the appeal filed by the insurance company, set aside the order of the DSF and dismissed the complaint against the insurance company.