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Insurance firm told to pay Rs 25,000 to Manimajra resident for causing mental agony

Garg made a payment of Rs 3,69,750 towards the repair of the vehicle. However, the money was not refunded though the complainant approached the insurance firm several times.

The District Consumer Disputes Redressal Forum directed an insurance firm to pay a compensation of Rs 25,000 for causing mental agony to a resident of Indira Colony, Manimajra. Pronouncing the orders on December 29, the forum also asked United India Insurance Co. Limited to pay Rs 3,44,668 (as assessed by the Surveyor as per survey report) along with Rs 15,000 as cost of litigation to Tek Chand Garg and Nidhi Garg.

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Garg stated in the complaint that they had purchased an Audi car for personal use. The said car was comprehensively insured with the insurance firm from April 11, 2015 to April 10, 2016.

The vehicle met with an accident and was taken to the authorized service station, where the necessary repairs were made. Garg stated that the insurance firm asked them to make the payment towards the repair and assured to pay the amount by sending the repair cost through a draft at his address.

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Garg made a payment of Rs 3,69,750 towards the repair of the vehicle. However, the money was not refunded though the complainant approached the insurance firm several times. The firm then repudiated the claim.

Garg then filed a case in the consumer courts on September 18, 2015. In its reply, the insurance firm said that the complainants concealed a material fact regarding an earlier insurance claim from Videocon Liberty, where the said vehicle was earlier insured. Hence, the firm had repudiated the claim.

First uploaded on: 01-01-2017 at 04:54 IST
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