Insurer asked to pay up for ignoring claim

CONSUMER NOTES: The Consumer Forum, headed by Asha Shetty, said the insurance company had shown gross negligence.

October 12, 2012 11:43 am | Updated October 18, 2016 02:52 pm IST - MANGALORE

A consumer, who could not get any compensation for the harassment caused to him by car insurer from the Insurance Ombudsman, has been awarded a compensation of Rs. 10,000 by the Consumer Forum here.

The Dakshina Kannada District Consumer Disputes Redressal Forum ordered ICICI Lombard General Insurance Company to pay the amount for ignoring a claim of Rs. 6,823.

The forum directed the insurance company to pay Rs. 2,000 towards litigation expenses. Girish D. Karnawat, a resident of Kadri Kambala Road, had lodged the complaint.

Damage to car

Mr. Karnawat, who had insured his car with ICICI Lombard, said that in July 2010, his car’s windshield broke when a coconut fell on the car.

The authorised dealer and a representative of the insurance company inspected the vehicle the next day. He alleged that the claim of Rs. 6,823 was “totally ignored” by the insurance company.

The Hyderabad-based Insurance Ombudsman allowed the reimbursement of actual expenses incurred for repair, but disallowed the cost, interest, and compensation claimed by Mr. Karnawat. Aggrieved by this, Mr. Karnawat filed a complaint with the Forum.

ICICI Lombard said that there was no lapse on its part as it had sent him a cheque for Rs. 6,823 as directed by the ombudsman.

Regarding the order passed by the Insurance Ombudsman, the Consumer Forum said that it had in fact revealed that the insurer “was lethargic”.

It said: “The ombudsman is not discharging judicial or quasi judicial functions. The decision of the ombudsman is not binding on the complainant if it is not accepted by the complainant.” Besides, the ombudsman had not considered the compensation for the “harassment” and the “inconvenience” caused to the complainant.

‘Gross negligence’

The Consumer Forum, headed by Asha Shetty, said the insurance company had shown “gross negligence” in spite of receiving several emails and “put (the complainant) to inconvenience and harassment …without honouring the meagre amount involved in this case, i.e. Rs. 6,823.”

The payment should be made by October 28.

In case of failure to comply with the order, the company’s Managing Director, based in Mumbai, and local Branch Manager have been asked to pay interest at the rate of 12 per cent per annum on the total amount till the date of payment.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.