Insurance firm asked to pay compensation for rejecting claim on stolen motorcycle

The Tiruchi District Consumer Disputes Redressal Forum has ordered the United India Insurance company to pay a city resident the insured amount of a motorcycle that was stolen and a compensation of Rs.2,500 for causing mental agony by rejecting his claim.

According to Consumer Protection Council, Tamil Nadu, which took up the case on behalf of the owner of the vehicle P.Ramkumar of Puthur, the motorcycle parked near Chinthamani was stolen on November 7, 2007. Though he went to the Fort Police Station to lodge a complaint, no policeman was available as it was Deepavali eve.

He informed the insurance company about the theft on November 9.

Subsequently, Ramkumar had lodged a complaint with the police and obtained a receipt for the same.

However, the receipt was not accepted by the insurance company.

FIR

A FIR was registered only on April 2, 2008. Later, based on a police report a certificate stating that the vehicle was not traceable was issued by the Judicial Magistrate I and sent it to the company by registered post asking it to honour his claim.

On August 4, 2010, his claim for compensation was rejected stating that there was inordinate delay in intimating the theft of the vehicle. The company in a written statement filed before the forum argued that the claim was not genuine and the complainants had wilfully suppressed the facts to claim that his vehicle was stolen on November 7, 2007. The company should have been informed about the alleged theft immediately and the claim form should have been furnished in time, it said and contended there was no deficiency of service.

After hearing the case, the forum comprising P.Jacob Jayakumar, president and T.Kavitha, member, held that the company had committed deficiency of service and though there was some delay the complainant was not responsible for the delay in registration of the FIR.

The forum ordered the company to pay Ramkumar Rs.17,000, the insured amount with 8.5 per cent interest from the date of filing complaint till the date of payment.

It also ordered the company to pay a compensation of Rs.2,500 for causing mental agony to Ramkumar, and Rs.1,000 towards costs.