For causing harassment to a Manimajra resident by mentioning wrong vehicle number on insurance policy, district consumer disputes redressal forum, Chandigarh, directed an insurance company to pay Rs. 15,000 as compensation for unfair trade practices.
The consumer forum also directed Bharti Axa General Insurance Company Limited to refund Rs. 16,207 premium amount, along with Rs. 5,000 litigation cost, to Shakuntla Saini, a resident of Manimajra.
Saini had got her Hyundai car insured from Bharti Axa General Insurance Company Limited in June 2013. She alleged, however, in the policy document the vehicle number had been wrongly been mentioned, the fact came to notice when Saini was stopped by the police for checking of documents.
Saini brought the matter to the notice of the car dealer from whom she had purchased the car as the cover issued note wherein the vehicle was correctly mentioned was issued by the dealer.
The dealer, in turn, asked her to visit the insurance company to get the mistake rectified. She alleged that instead of rectifying the mistake, the insurance firm demanded Rs. 10,738 for the said correction in the policy. When Saini refused to make the payment, her policy was cancelled by the insurance company. She claimed despite the mistake of the insurance company she had to buy a new policy.
Bharti Axa General Insurance Company Limited claimed that owing to entry of the wrong number in the policy document, the company had to re-generate the policy by cancelling the previous policy. They offered to refund the amount.
The consumer forum, in its order dated June 13, held, "Once the insurance company itself admitted that the demand of money for second policy was wrongly made, then the act of the firm in cancellation of policy instead of making necessary correction therein, without charges, amounts to gross deficiency in service as well as indulgence into unfair trade practice."