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Insurance firm to pay up for delay in settling claim

The District Consumer Disputes Redressal Forum has directed National Insurance Company to pay Rs 50,000 compensation for unreasonable delay in settling a claim.

Written by Express News Service | Chandigarh |
February 2, 2009 11:34:18 pm

The District Consumer Disputes Redressal Forum has directed National Insurance Company to pay Rs 50,000 compensation for unreasonable delay in settling a claim.

Anju Mittal,a resident of Sector 44,had insured her car with the company. It was stolen in February 2007.

She said a claim was lodged along with requisite documents. The company,however,took 15 months to settle the claim during which she suffered mental agony,physical unrest and mental torture.

She said even after four months when the claim was not settled,the company started making unjustifiable demands for those documents which could not be legally sustained.

She was asked to submit a ‘non-traceable report duly accepted by the court’ and ‘the registration book in original’.

While the untraced report was already submitted,the RC was kept in the car when it was stolen.

The forum stated that the company did not bother to find out that the RC could not be submitted in original as it was lying in the car.

The forum also found that the RC form supplied by the company to the complainant was incomplete.

The company,in its reply,said the claim was settled according to the terms and conditions and Rs 31,500 was released to the complainant.

They denied any deficiency on their part.

By referring to Section 50 of the Motor Vehicle Act,1988,and Rule 55 of the Central Motor Vehicle Rules,1989,the forum said the complainant was to fill up form No 29 and submit the same either to the Registering Authority or to the company.

The forum,led by President Jagroop Singh Mahal stated: “However,even then the company insisted the complainant to get it transferred in their favour ignoring the law and shutting their eyes to the fact that the complainant is a woman and should not be compelled to go to Delhi for the purpose. Not only this,they gave her incomplete papers with the sole objective that the transfer is not effected during that visit and she had to go again to Delhi for this purpose. It is not only deficiency in service but an unfair trade practice being adopted by the company.”

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