A big win for car owners just happened. An insurance company must pay up. They wrongly denied a claim. This ruling comes from Kochi, India. It offers hope for many policyholders.
The Consumer Commission in Ernakulam made the order. Oriental Insurance Company got the order. They must pay for a wrongfully denied accident claim. This case proves that consumers have power.
Insurance Company Must Pay Up
M.P. Babu from Kochi suffered an accident. His Hyundai i20 car crashed in December 2017. He filed a claim with Oriental Insurance. But the company denied his request.
The insurer said the damage was minor. They claimed it was easily fixable. However, their own surveyor disagreed. The surveyor said the car was a total loss.
The repair cost was very high. It reached ₹11,46,677. The car’s Insured Declared Value (IDV) was ₹10,54,000. The surveyor recommended paying out the IDV.
Oriental Insurance denied the claim anyway. This denial happened in January 2018. Mr. Babu then took his case to the Consumer Commission. He sought justice for the unfair denial.
The Commission looked at all the facts. They found the insurer’s denial unfair. It was an “arbitrary” decision. The company failed in its service to the customer.
So, the Commission ordered Oriental Insurance to pay. They must pay Mr. Babu ₹10,54,000. This covers the full value of his car. This is a crucial amount for him.
The order also includes 9% interest. This interest adds up from January 2018. Imagine how much that sum grows over years! It is a significant extra cost for the insurer.
The company also pays for Mr. Babu’s troubles. They must pay ₹25,000 for mental agony. Plus, ₹10,000 covers his legal costs. This is a strong message to insurance providers.
Your Rights as a Policyholder
This case shows that insurance companies are not always right. You have rights as a policyholder. Do not accept a denial if it feels wrong. Fight for what you deserve.
Always keep good records. Document everything about your accident. Get copies of all reports. This includes surveyor reports and communication with your insurer.
If you face a similar issue, you can complain. Consumer forums are there to help you. They review cases like Mr. Babu’s. You can learn more about consumer protection.
Visit the National Consumer Disputes Redressal Commission website. It helps you understand your legal options. Knowing your rights is your best defense.
The Insurance Regulatory and Development Authority of India (IRDAI) also helps. They set rules for insurance firms. They protect policyholders. Check their site for more information.
This ruling is a reminder for everyone. Insurance must cover valid claims. Companies cannot deny claims without good reason. Your policy is a promise, and it should be kept.
The ₹10.54 lakh compensation with interest is a huge win. It sets a precedent. It gives confidence to other consumers. Stand up for your rights. You can win too.
