Hyderabad drunk-driving dispute: Court smells foul play; payout ordered, owner gets partial relief

HYDERABAD: When Sridhar Kumar Reddy, a businessman from Ranga Reddy district, filed an insurance claim after his truck was damaged in an accident, he was taken aback to learn that it was rejected on the grounds that driver was allegedly intoxicated.Two years later, a consumer court in Hyderabad ruled partially in his favour, directing the insurer to pay for the assessed damages. However, the compensation awarded is significantly lower than what he originally sought.On Feb 17, 2022, Reddy’s goods vehicle met with an accident at Exit 8 on the ORR. The driver was injured and the vehilce was heavily damaged. Reddy, who insured the vehicle with Magma HDI under a commercial policy, filed a claim for repair costs and business losses. However, the insurer rejected the claim, citing a hospital prescription indicating that the driver was drunk, a violation of policy terms.

Reddy contested the claim denial in the court, stating that the alcohol mention was a mistaken note by hospital staff and not supported by a formal test. He also pointed to the police report and damage certificate, which made no mention of intoxication.With the case transferred from Ranga Reddy district consumer commission to Hyderabad district consumer disputes redressal commission III last year, citing heavy pendency, the hearing concluded on Sunday. While the commission found that the insurance company’s full denial was not entirely justified, it agreed that compensation must align with the assessed damages and policy stipulations.