oriental insurance
CHANDIGARH: UT consumer forum directed Reliance General Insurance Company Limited to pay Rs 58,693 within 30 days, along with Rs 5,000 as cost of litigation, to Kailash Yadav, a Sector 21 resident.
According to his complaint, Yadav had purchased an insurance policy for his vehicle for a period from January 2, 2008 to January 1, 2009, and paid Rs 6,915 as premium. However, during the insurance period, his vehicle met with an accident. The claim application was forwarded to insurance company, which asked Yadav to furnish consent letter for having accepted Rs 60,000 towards net of salvage or cash loss basis.
The understanding was forwarded to the insurance company on September 18, 2008, on a duly notarised stamp paper. After getting the vehicle repaired, when he demanded Rs 60,000 from the company, it allegedly did not release the amount even after receipt of legal notice. This forced Yadav to file a complaint before consumer forum on account of deficiency in services.
In its written reply, Reliance General Insurance Company Limited pleaded that after verification and inspection of the records, it transpired that Yadav had opted for 20% as no claim bonus from the insurance company at the time of taking the policy, although he had taken a claim from his previous insurers, ie Oriental Insurance Company and, therefore, his claim was repudiated.
After hearing the pleas of both sides, the forum, led by Jagroop Singh Mahal, held, “The insurance company was well aware that earlier the vehicle was insured with Oriental Insurance Company Limited and before issuing the policy in favour of Yadav, it was its duty to confirm whether the complainant was entitled to No Claim Bonus or not. If the insurance company failed in its duty to confirm this fact and issued the policy giving No Claim Bonus to Yadav, then he cannot be penalised for the inaction on the insurance company’s part.”
CHANDIGARH: UT consumer forum directed Reliance General Insurance Company Limited to pay Rs 58,693 within 30 days, along with Rs 5,000 as cost of litigation, to Kailash Yadav, a Sector 21 resident.
According to his complaint, Yadav had purchased an insurance policy for his vehicle for a period from January 2, 2008 to January 1, 2009, and paid Rs 6,915 as premium. However, during the insurance period, his vehicle met with an accident. The claim application was forwarded to insurance company, which asked Yadav to furnish consent letter for having accepted Rs 60,000 towards net of salvage or cash loss basis.
The understanding was forwarded to the insurance company on September 18, 2008, on a duly notarised stamp paper. After getting the vehicle repaired, when he demanded Rs 60,000 from the company, it allegedly did not release the amount even after receipt of legal notice. This forced Yadav to file a complaint before consumer forum on account of deficiency in services.
In its written reply, Reliance General Insurance Company Limited pleaded that after verification and inspection of the records, it transpired that Yadav had opted for 20% as no claim bonus from the insurance company at the time of taking the policy, although he had taken a claim from his previous insurers, ie Oriental Insurance Company and, therefore, his claim was repudiated.
After hearing the pleas of both sides, the forum, led by Jagroop Singh Mahal, held, “The insurance company was well aware that earlier the vehicle was insured with Oriental Insurance Company Limited and before issuing the policy in favour of Yadav, it was its duty to confirm whether the complainant was entitled to No Claim Bonus or not. If the insurance company failed in its duty to confirm this fact and issued the policy giving No Claim Bonus to Yadav, then he cannot be penalised for the inaction on the insurance company’s part.”
