The district consumer disputes redressal commission-II, has directed IFFCO Tokio General Insurance Company Limited to pay ₹1.8 lakh along with interest and compensation to a Delhi resident after holding that the insurer had wrongly repudiated his motor insurance claim on the ground that the vehicle was allegedly “de-registered”.
The order was passed in a complaint filed by Raminder Singh Khalsa, owner of a Fiat “Linea” car insured under a comprehensive policy issued by the company for the period between March 2, 2022 and March 1, 2023. The vehicle carried an insured declared value (IDV) of ₹1.8 lakh.
According to the complaint, the accident took place on February 6, 2023, when Khalsa was driving on the Mohali–Zirakpur road during a business visit. His vehicle reportedly hit concrete blocks lying on the road and was subsequently struck from behind by another vehicle. The damaged car was taken to a workshop, where the repair estimate was assessed at over ₹2.5 lakh, exceeding the insured value of the vehicle.
The insurance company later repudiated the claim, contending that the diesel vehicle, being more than 10 years old, stood “de-registered” under directions relating to restrictions imposed on old diesel vehicles operating in Delhi-NCR. The insurer further argued that the vehicle was being driven without valid registration at the time of the accident.
However, the commission observed that the complainant had produced a registration certificate valid until September 2026. It further held that the insurer failed to provide conclusive evidence showing that the registration had been legally cancelled. The commission also noted that the accident occurred outside Delhi, on the Mohali–Zirakpur route, making the insurer’s reliance on NCR-related restrictions questionable.
{{/usCountry}}However, the commission observed that the complainant had produced a registration certificate valid until September 2026. It further held that the insurer failed to provide conclusive evidence showing that the registration had been legally cancelled. The commission also noted that the accident occurred outside Delhi, on the Mohali–Zirakpur route, making the insurer’s reliance on NCR-related restrictions questionable.
{{/usCountry}}The commission observed that the insurer had issued the policy after verifying the vehicle documents and accepting the premium despite being aware of the age of the vehicle. Holding the repudiation to be arbitrary and amounting to deficiency in service, the commission directed the insurer to pay ₹1.8 lakh with 6% annual interest from March 28, 2023, along with ₹20,000 towards compensation and litigation expenses.