Forum asks insurance firm to honour car owner's claim

The Motor Accident Claims Redresseal Forum has asked National Insurance Company to honour a car owner's claim of over Rs 3.31 lakh and also pay him a compensation of Rs 20,000.
The Forum, in its ruling early this week, held that the state-run company defaulted in giving proper services and adopted unfair business practices towards the customer.
The ruling was given by Forum President Sneha Mhatre and members Madhuri Vishwarupe and N D Kadam.
Besides asking the company to honour the insurance claim of Rs 3,31,394 put forward by the customer, Pravin Nathlal Thakkar, they directed it to pay him Rs 10,000 each for causing mental agony and towards legal expenses.

Thakkar, a resident of Ghatkopar, had insured his car with the company and the vehicle was badly damaged in the floods of July 26, 2005. He got the car repaired in a garage and submitted a bill of Rs 3,31,394 to the insurance firm.
The company, however, agreed to pay him only Rs 1,78,223 in form of a voucher after making certain dedications from the claim. Aggrieved, the car owner moved the Forum.

The Forum noted that "the insurance company had not explained as to why and what amount it is disallowing from the total amount claimed by the complainant.

"The complainant had submitted all bills along with the claim. Hence, for transparency in services and to ensure the customer is not put to hardships, the company could have easily informed the customer details of deductions and the eligible amount as compensation."
Rejecting the submissions made by the company, which was found guilty of deficiency in providing services, the Forum asked it to honour the car owner's original claim and also provide a compensation of Rs 20,000.