The district consumer grievances redressal forum has criticized a general insurance company for refusing to accept the car insurance claims of a petitioner.
Laxmikanth Khatwate, residing in Dattatreya Colony in Hubballi, had obtained a comprehensive insurance policy from Reliance General Insurance for his Hyundai car by paying a premium of Rs 16,606. This insurance was valid from June 2021 to June 2022.
However, in January 2022, the car was involved in an accident on Hubballi-Karwar Road and sustained damage. Laxmikanth approached the insurance company to file a claim.
However, the company rejected the claim, stating that there were additional passengers in the car at the time of the accident, which violated the company’s rules.
In response to this, the petitioner lodged a complaint with the district consumer grievances redressal forum, arguing that this constituted a service lapse and requested the Forum to order the company to settle the claims.
After hearing the complaint, the Forum, led by retired judge Eshappa Bhute, ruled that since the general insurance policy was active when the accident occurred, it was the company’s responsibility to provide insurance benefits. The Forum decreed that it was unjustifiable for the claim to be rejected on the grounds that six people were traveling in a five-seater car, thereby denying insurance coverage. The Forum directed the insurance company to pay an insurance amount of Rs 4.7 lakh within 30 days of receiving the order.
Bhute also ordered the company to compensate the petitioner with Rs 50,000 for mental distress and inconvenience, as well as Rs 10,000 as the expenses incurred during the case.
