Insurance firm directed to pay compensation

The complainant then negotiated with the agency,who reduced the amount to Rs,1,40,013.

Chandigrah | Published: November 24, 2013 2:38:20 am

The District Consumer Disputes Redressal Forum directed the Oriental Insurance Company to pay Rs 30,000 compensation and litigation expenses of Rs 10,000 to Hitesh Pahwa,a resident of Himishikha-Pinjore,for being callous and insensitive in its conduct and deficient in service.

Pahwa’s complaint pertained to his vehicle,which was used as a funeral van. This van and two freezers were available free of cost for anybody needing them.

The van met with an accident while on service,after which Pahwa informed the insurance firm. A surveyor from the firm inspected the damaged vehicle; obtained an estimate of Rs 1,44,703 and authorised the agency to start repairs.

However,after the repair,the agency sent a pre-invoice for Rs 2,11,896. Seeing the discrepancy,the complainant referred the matter to the company,but the officials allegedly refused to acknowledge his letter.

The complainant then negotiated with the agency,who reduced the amount to Rs,1,40,013.

Hitesh again submitted his claim to the insurance company for Rs 1,46,013 against which the insurance company settled the claim for Rs 52,650. He later filed the complaint with the Forum. The forum directed the company to reconsider the claim,failing which it would be liable to pay the balance amount of Rs 93,363 along with the interest at the rate of 9 percent per annum.

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