Insurance firm told to pay for stolen car

Insurance firm told to pay for stolen car

PUNE: The District Consumer Forum has ordered the public sector United India Insurance company to pay 80 per cent of the claim amount after a car which was insured for Rs 12 lakh was stolen. 

The company had earlier repudiated the claim.

Anil Vithal Sakhare of Hinjawadi moved the forum against the company in December last year. 

He purchased a Toyota Innova after taking a loan from Central Bank of India. The car was insured with the company for one year in 2016 for Rs 12.12 lakh against loss or damage to car. In August 2016, the car was given for washing and it was stolen from the washing centre. Accordingly, he lodged a complaint at Wakad police station and also filed the claim with all necessary documents with the insurance company. The police could not trace the car. 

The insurance company rejected the claim in its written statement. It said the complaint is barred by limitation. The company had repudiated the claim on the ground that in the police complaint it is mentioned that the car was stolen by somebody and in the policy it is clearly mentioned that the clauses of house breaking, burglary, theft are out of the purview of the policy and hence the claim was rejected, the company submitted.

However, relying on Supreme Court judgements on theft of vehicles and insurance claims, the Consumer Forum ordered the company to pay 80 per cent amount of the claim to the complainant on non-standard basis within 30 days. The company was also asked to pay Rs 10,000 as compensation and litigation cost.

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