Insurance co told to pay Rs 51k for car repair

CHANDIGARH: The UT consumer forum on Monday directed United India Insurance Company Limited to pay Rs 51,590 along with Rs 2,200 as litigation costs within 30 days to Mohali resident Inder Parkash.
The complainant bought a car and got it insured for Rs 2 lakh in April, 2007. However, it met with an accident on the Naraingarh-Panjlasa road on December 4, 2007.
Parkash reported the matter to the company who took his signatures on an insurance claim paper and allegedly assured to pay for the repairs.
However, when the bill was sent, the company refused to pay the amount due to which the service centre refused to release the car.
The company allegedly did not release the payment on one pretext or the other. Following this, a complaint was lodged with the consumer forum.
A notice was served to the company, which in its reply, pleaded, The claim was rightly refused as it wasnt payable as per terms and conditions of the insurance policy as well as provisions of the Indian Motor Tariff.
The forum, headed by Jagroop Singh Mahal, said the companys plea - that Parkash had submitted the insurance claim in the previous year - is incorrect. If he had not submitted any such claim in the previous year, he was rightly entitled to no claim bonus as was given by the company. Since information regarding the no claim bonus is not incorrect, the claim now submitted by the complainant cant be denied to him, he added.