Insurer to pay Rs 3L for rejecting car insurance claim

Insurer to pay Rs 3L for rejecting car insurance claim

Insurer to pay Rs 3L for rejecting car insurance claim

Dehradun: The Nainital district consumer commission on Thursday directed ICICI Lombard General Insurance Company Ltd to compensate Rs 2.5 lakh to Narendra Gautam, whose car was involved in an accident in Nainital on April 30, 2023.At the time of the incident, Gautam’s brother, Rahul, was driving the vehicle, accompanied by their parents. Gautam, who was in Bengaluru when the accident occurred, informed the insurance company, and Rahul filed an FIR.Based on the insurer’s assurance of reimbursement, Gautam went ahead with the vehicle repairs at his own expense. However, the insurance company later rejected the claim, alleging that the car was being used for commercial purposes under the ‘hire and reward’ category.Upon review, the commission found that neither the insurer nor the appointed surveyor submitted any documentation to substantiate this claim, indicating a deficiency in service delivery. After examining repair bills and supporting documents, the commission confirmed that Gautam had spent Rs 2,51,200 on repairs on May 18, 2023.The commission ruled that the insurer must reimburse the full amount with 8% interest from the date of payment of the bill. Additionally, the commission ordered the insurance company to pay Rs 30,000 to Gautam for mental distress and legal expenses within 45 days.

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