This story is from January 24, 2017

Insurance firm rejects claim, told to pay up with 9% interest

The District Consumer Disputes Redressal Forum of Gurugram has directed insurance company Bharti Axa to pay a complainant Rs 71,155 as compensation, with 9% interest, in a five-year-old accident claim that was turned down.
Insurance firm rejects claim, told to pay up with 9% interest
GURUGRAM: The District Consumer Disputes Redressal Forum of Gurugram has directed insurance company Bharti Axa to pay a complainant Rs 71,155 as compensation, with 9% interest, in a five-year-old accident claim that was turned down.
It also directed Bharti Axa to pay an additional Rs 10,000 for mental agony and harassment it had caused by denying the payout. In his order dated January 18, the forum’s president, Subhash Goyal, directed Bharti Axa General Insurance Company to pay the compensation amount to the complainant within 30 days.
Sher Singh, a resident of Sherpur village in Pataudi, had filed the complaint in May 2012 against Bharti Axa for not reimbursing him for the repair of his insured vehicle, a truck, which was damaged in a road accident.
“I had got my vehicle insured with Bharti Axa for the period from February 26, 2011 to February 25, 2012, for a total sum of Rs 13.56 lakh. But when the accident happened, they refused to compensate for the damage,” said Singh.
In his complaint, Singh had mentioned that the insured vehicle was being driven by Islam, who had a valid and effective driving licence, when it met with an accident on June 11, 2011 in Maharashtra. The complainant informed the insurance company and spent Rs 1.69 lakh on its repair, then submitted the claim after completing all formalities. But the insurance company refused to reimburse it, despite repeated requests.
At the forum, the insurance company contested the claim, saying it had been informed about the accident five days after it happened. “After receiving the information, the surveyor submitted a detailed report and assessed the loss at Rs 71,155, payable subject to terms and conditions of the policy. The driving licence of Islam, who was driving the vehicle, was verified by competent authority and found to be fake. Thus, the complainant had violated terms and conditions of the insurance policy, and his claim was annulled,” submitted Bharti Axa in its reply before forum.

The forum rejected this argument and said the insurance company had been informed immediately after the accident. “Going through evidence and circumstances, it emerges the vehicle was insured and the driver had a valid licence,” observed the forum, directing that the insurance company pay up the recommended sum.
TOI made several attempts to contact the insurance company through the contact number and email on its official website, but the company did not revert with their version.
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