Order Date: 02.07.2024
Order Name: National Insurance Co. Ltd. vs Md. Sallauddin
Case No.: Revision Petition No. 803 of 2020
The National Consumer Disputes Redressal Commission (NCDRC), led by Presiding Member Binoy Kumar, recently allowed a revision petition from National Insurance Co. Ltd. The case centered on the failure of the policyholder to promptly report the theft of his vehicle to the police.
Key Facts:
The complainant had insured his Bolero pick-up van with National Insurance Co. Ltd. During the policy period, the van was stolen. However, he waited 27 days before filing an FIR with the local police and another 30 days to submit an insurance claim. Due to these delays, his claim was rejected. Feeling wronged, he approached the District Consumer Disputes Redressal Commission in Khagaria, Bihar, which ruled in his favor, directing the insurance company to pay Rs. 5,50,000, along with Rs. 20,000 as compensation and Rs. 10,000 for litigation costs.
Unhappy with this decision, the insurance company appealed to the State Consumer Disputes Redressal Commission, Bihar, but the appeal was dismissed. The insurance company then took the matter to the NCDRC.
NCDRC Observations:
The NCDRC noted the significant 27-day delay in filing the FIR. They referenced the case of Gurshinder Singh vs. Shriram General Insurance Co. Ltd., which emphasized the importance of immediate police notification in theft cases. The court stressed that timely police reports enable quick action to recover stolen vehicles, which is primarily the police’s responsibility.
The NCDRC pointed out that if the police recover the vehicle after an FIR is lodged, there is no need for an insurance claim. Compensation claims only arise when the police fail to recover the vehicle, leading to a final report.
The NCDRC concluded that while delays in notifying the insurance company can sometimes be excused, filing an FIR must be immediate. As such, the NCDRC set aside the orders from the District and State Commissions and allowed the insurance company’s revision petition.
Takeaway:
When your vehicle is stolen, immediately file an FIR with the local police. Prompt action is crucial for both recovering the vehicle and ensuring your insurance claim is valid. Delay in filing an FIR can lead to claim rejection, as highlighted by this judgment.
