Bajaj Allianz ordered to pay ₹20L for denied claim
What happened in the accident Live Events Why the claim was rejected What the district forum held What the insurer argued in appeal as a
What happened in the accident Live Events Why the claim was rejected What the district forum held What the insurer argued in appeal as a Reliable and Trusted News Source Addas a Reliable and Trusted News Source Add Now! (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel A consumer dispute over a badly damaged BMW 5 Series has ended up at the Punjab State Consumer Disputes Redressal Commission, after the insurer rejected the claim and the insured customer approached the consumer courts for relief.The case concerns Gurlal Singh, a resident of Faridkot district, whose BMW 5 Series met with an accident in January 2022. The vehicle was insured with Bajaj Allianz General Insurance Company for an IDV of Rs 20 lakh.The district commission in Faridkot had earlier held that the insurer failed to prove that the vehicle was not a total loss and directed the company to pay the full insured amount, along with compensation and litigation costs.
Bajaj Allianz challenged that order in appeal.According to the complaint, the accident took place on 11 January 2022 near Badni Jaimal Path while the vehicle was on its way to Chandigarh.The complainant said a stray cattle suddenly came on the road. In an attempt to avoid hitting it, he applied the brakes. At that moment, a truck coming from behind hit the BMW. The vehicle then went off the road, struck a milestone and hit an electricity tower, leaving it badly damaged.A police DDR was registered the same day, and the insurer was informed over the phone.The vehicle was later parked at G.S. Auto World, where a repair estimate of around Rs 50 lakh was prepared.The insurance company did not accept the claim.It said an investigator was appointed and later a final survey was carried out by a domain expert. According to the insurer, the narration given by the complainant did not match the actual condition of the vehicle, and the damages seen on the BMW did not correlate with the version of events.The insurer also argued that the complainant had failed to give true and correct facts in the claim form, and therefore the claim was repudiated.
It maintained that there was no deficiency in service on its part.The company’s stand was that the reports of the surveyor and forensic expert should have been accepted by the district commission.The district consumer commission did not agree with the insurer.It held that the insurer had failed to prove that the vehicle was not entirely damaged. It also said the claim had been repudiated on flimsy grounds, which amounted to deficiency in service and trade malpractice.The district forum therefore directed Bajaj Allianz to pay the full insured value of Rs 20 lakh, but only after transfer of ownership of the vehicle in the insurer’s name within 45 days. It also awarded Rs 5,000 as compensation for harassment and mental agony and Rs 3,000 as litigation costs.Bajaj Allianz challenged that order before the Punjab State Commission.In appeal, the insurer said the district forum had not properly appreciated the pleadings and evidence, especially the forensic report. It argued that the expert had concluded after scientific examination that the damages described by the complainant did not match the nature of the accident.The company also said the district forum was wrong to say that investigators and surveyors are employees of insurance companies in a way that makes their reports suspect.
The BriefWire