Renault Triber gutted in fire, owner granted Rs 5.89 lakh despite no third-party insurance

Fire in stationary vehicle: Court

• This commission draws its attention to the extraordinary concession made by the opposite party’s (insurer) own deputed spot surveyor, K Srinivas, in his Survey Report which stated: “There is no TP (third party) injury in this accident.”
• This is an unequivocal, on-record finding by the opposite party’s own authorised representative.
• The entire rationale for mandatory third-party insurance under the Motor Vehicles Act, 1988 (sections 146 and 147), is to protect third parties from financial harm arising out of vehicle usage.
• In this case, the accident was a fire caused by mechanical heat/sparks in a stationary vehicle on the roadside. There was no injury to any third party.
• The insurer seeks to use the absence of TP coverage to deny an own-damage (OD) claim in a situation where TP coverage was never needed, never invoked, and expressly found to be irrelevant by its own surveyor.
• This is a purely technical ground devoid of any connection to the actual loss suffered by the complainant.
• The Telangana State Disaster Response and Fire Services Department officially determined the cause of the fire as “Mechanical Heat or Sparks” — squarely covered under Section 1, Clause (i) of the Standalone Own Damage (SAOD) policy, which says, “loss or damage by fire, explosion, self-ignition, or lightning.”
• The factum of loss, the cause of loss, the quantum, and the validity of the SAOD policy during the accident are all undisputed.
• The absence of third-party insurance, though a violation of statutory provisions, does not amount to a fundamental breach affecting the own-damage claim.
• There is no nexus between such absence and the damage caused to the vehicle.

Blaze, claim submission

The complainant owned the vehicle, i.e., a motor Car (Triber RxZ Manual) manufactured by Renault India Pvt Ltd, and insured her car from time to time with the insurance company, i.e., the opposite party.

On March 3, 2024, the complainant, along with her relatives, was proceeding to Vemulawada. When they reached Posanipet village, Shivar in Jagityal district, fumes came out from the bonnet. Immediately, they stepped out of the car.

Even as they watched, the car burned down along with their luggage and gold. The vehicle was destroyed. Immediately, the complainant informed the insurance company about the incident.

The complainant also submitted relevant papers for the insurance claim amount. But the opposite party repudiated the claim in June 2024, allegedly with mala fide intention, to escape from the liability, which amounts to deficiency of service, it was argued.

‘IRDA surveyor must assess’

The insurer submitted that mere filing of a police report and investigation is not sufficient. The loss must be assessed by the qualified Insurance Regulatory and Development Authority (IRDA) licensed surveyor as per the provisions of the Insurance Act.

It was submitted that the complaint did not follow the mandatory provisions of the Motor Vehicle Act. She tried to put her mistake on the opposite party. There is no mala fide intention on the part of the opposite party in repudiation to escape from the liability.

“The cause of fire is mechanical heat and sparks. The complainant stated that the vehicle was serviced in October, November 2023, and February 2024 at Renault service centre this shows that the vehicle was suffering from mechanical
defects from the beginning, from the date of the purchase, which are not covered under the policy,” it added.

Significance of ruling

This judgment matters because it prevents insurers from arbitrarily denying own damage claims due to lapsed third-party insurance. It distinguishes “cancellation” from “natural expiry” and establishes that technical, unrelated breaches cannot defeat a legitimate claim unless they are fundamental to the cause of loss.

Consumers facing similar grievances may contact the consumer helpline in their respective states (Telangana contact: 040 233 94 399) or dial the National Consumer Helpline at 1915 for assistance.