Baggage delayed: Consumer forum orders insurance to pay USD 500 per bag

It was mentioned in the terms and conditions of the insurance that in case of a delay of more than 12 hours in the delivery of the luggage at the destination, the firm would pay $500 to each complainant.

The complainant alleged that the belongings of all complainants were booked from Delhi on June 23, 2022 but were received on June 25 at 8 pm in Bangkok, causing inconvenience and trouble to them. The complainants sent e-mails to the insurance firm seeking payment as per the insurance claim for the delay and even the complainant personally visited the firm’s office, but to no avail, it was alleged.

Reliance General Insurance in reply submitted that the claim was lodged only by Complainant No. 3 Dharta Devi and no claim whatsoever had ever been lodged with the insurance firm by the other complainants. Even all baggage tags and PIR (Property Irregularity Report) were in the name of Dharta Devi and she failed to provide the bills and receipts related to any emergency purchases made by her, despite the repeated requests by the firm.

Hearing the complaint, the District Consumer Commission allowed the complaint of Virdi and other five family members to pay a claim amounting to $500 to each complainant as per the prevailing rent at the time of payment, and to pay a composite amount of Rs 10,000 to the complainants as compensation.

Reliance General Insurance, however, challenged the order of the District Commission at the State Consumer Disputes Redressal Commission, arguing while passing the order, the District Commission failed to appreciate the documentary evidence available on record, which resulted in perverse findings.

The State Commission on hearing the matter held that the District Commission had aptly noticed the deficiency in service on the part of the appellants (Reliance General Insurance) but failed to take into consideration that there were four luggage bags containing the belongings of all six respondents, therefore, the insurance firm was only liable to pay for the delay of more than 12 hours in the delivery of four bags of luggage at the rate of $500.

Thus, the direction contained in Para 8 (i) of the impugned order directing the Appellants (Insurance Company) to pay a claim amount of $500 to each of the six complainants as per the prevailing rate at the time of payment, is contrary to the material placed on record and to this extent, the order of the District Commission needs modification, said the State Commission.