Case Title: Brij Bhushan vs Manager, IFFCO Tokio General Insurance Company Limited and Anr.
Case No.: First Appeal No. 162/2023
The State Consumer Disputes Redressal Commission of Himachal Pradesh, presided over by Inder Singh Mehta, has made an important ruling. The timing of the claim notification to the insurance company doesn’t really matter, as long as the police were informed about the incident in a reasonable time frame. As a result, IFFCO Tokio General Insurance Co. was found to be in the wrong for refusing a valid accident claim due to late notification.
Here’s what happened:
A scooter owner had his vehicle insured with IFFCO Tokio General Insurance Company. Unfortunately, the scooter was involved in an accident. The owner promptly notified the insurance agent and took the scooter for repair to Barjeshwari Honda. The repair cost was Rs. 15,721/-. However, when the owner went to claim the insurance, the company rejected it citing late notification. The owner, feeling wronged, took the matter to the District Consumer Disputes Redressal Commission in Kangra, Himachal Pradesh.
The insurance company argued that the scooter owner was drunk while driving, and there was a considerable delay in the claim intimation – 85 days after the accident. The repair company, on the other hand, stated that it was only responsible for the repairs.
However, the District Commission dismissed the case. Unwilling to give up, the owner appealed to the State Consumer Disputes Redressal Commission of Himachal Pradesh.
The State Commission noted that the insurance company could not prove through medical reports that the owner was drunk at the time of the accident. Regarding the delay in claim intimation, the commission ruled it insignificant, given that the local police were informed on the day of the accident itself.
The State Commission declared that the insurance company was unjustified in rejecting the claim. However, the scooter owner only received Rs. 11,846.33/- for repairs as he failed to present an affidavit from the repair company. The amount was determined by the surveyor appointed by the insurance company.
The court ruled in favor of the scooter owner, ordering the insurance company to pay Rs. 11,846.33/- for repair costs, Rs. 5,000/- for compensation, and Rs. 5,000/- for legal expenses.
This judgment sends a clear message: if you’ve promptly alerted the police about an accident, a delay in notifying your insurance company shouldn’t be a reason for claim denial. It’s a significant ruling that might bring some relief to consumers facing similar issues.
