Information delay no basis for insurers to deny claim

Delay in informing an insurance company in a vehicle theft case cannot be a ground to deny claim to a policyholder who had filed a police case immediately after the incident, the Delhi Consumer Commission has held.

“It is the police, which is the statutory authority to investigate into the criminal offence as provided by the Criminal Procedure Code (CrPC). Delayed information to the company cannot form the basis for rejection of the claim against theft,” the Commission headed by President Justice J D Kapoor said.

The Commission was hearing a plea of the New India Assurance Corporation challenging a district forum’s order for paying a vehicle theft insurance claim of Rs 4.5 lakh, along with a compensation of Rs 1 lakh, to Pradeep Nagi. The insurance firm argued it received information about the vehicle theft five months after the incident, while the police complaint was registered on the second day.