Posts Tagged National Insurance Company Limited

Insurance firm penalised for denying vehicle claim

The Chandigarh Consumer Disputes Redressal Forum-I has directed the National Insurance Company Limited to pay Rs 60,000 to Bunty Goel, a resident of Sector 17, Panchkula, for denying his valid vehicle insurance claim.

In addition, President of the Forum P D Goel and Members Rajinder Singh Gill and Madanjit Kaur Sahota have also directed the firm to pay Rs 25,000 to Goel as compensation for mental agony and harassment caused to him, and Rs 11,000 as cost of litigation.

In his complaint, Goel had stated that he got his Mahindra Pick-up insured with the company from December 2008 to December 2009, after paying the requisite premium. He appointed Ajay Chaudhary as driver on the vehicle, who had a valid and effective driving licence. Soon after, the vehicle met with an accident and was badly damaged. The Surveyor appointed by the company told Goel to get the vehicle repaired and submit the bill for passing the claim. However, the later the bills were not cleared on the ground that driver did not have a valid driving licence at the time of accident.

In its reply in the court, the company stated that the driver had a licence for driving a Light Motor Vehicle (LMV), but there was no endorsement for driving a transport vehicle. Hence, the insurance claim was not payable, said the company.

However, the Forum observed that in the registration certificate of the vehicle, it was recorded that a vehicle is an LMV. In this light, the Forum upheld Goel’s insurance claim, and directed the company to compensate him accordingly.

From insurance cost, post Insurance firm penalised for denying vehicle claim

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