Case Study - 10 - Forum tells National Ins Co to pay Rs 59,000 to complainant

Rajesh Yadav vs National Insurance Company

DISTRICT Consumer Disputes Redressal Forum-II, Chandigarh, has directed National Insurance Company Limited to pay a compensation of Rs 59,242 to a complainant.

Rajesh Yadav, a resident of Ratpor Colony, Pinjore, is the owner and possessor of a Daewoo Cielo Car (HR-15B-0002) of 1997 model. The car was insured by National Insurance Company for a sum of Rs 1,40,000 in the name of T.K. Bansal, Sector 35, Chandigarh. Yadav, who had purchased the car from Bansal, had applied for transfer of insurance in his name through a letter dated December 23, 2002, which was reportedly received by the insurance company.

In a complaint, Yadav has alleged that the insurance company did not transfer the policy in his name till April 20, 2003. Meanwhile, the vehicle met with an accident on December 31, 2002, on the Kalka-Shimla Road at Tara Devi (Shimla) and reportedly received a damage to a tune of Rs 1,45,583.

When Yadav contacted the insurance company to refund the amount for the damages caused to his car, the company denied the claim stating that the company was not liable to pay the amount as the complainant was not insured on the date of loss.

After listening to both counsel, the Forum concluded that the insurance company was not right in repudiating the claim as the complainant had already filed for transfer of insurance on December 23.

The Forum directed the company to pay a compensation of Rs 59,242 to Rajesh Yadav for the damages. It also granted Rs 2,500 as costs of litigation to Yadav.