Insurance company asked to pay over Rs 3L for stolen vehicle

A consumer forum here has directed an insurance company to pay over Rs three lakh to a travel agency after it did not pay the insurance amount for a vehicle stolen six years ago.
A bench of New Delhi District Consumer Disputes Redressal Forum, presided by C K Chaturvedi, asked Reliance General Insurance Co Ltd to pay Rs 3,06,000 to Prince Tours & Travels, whose vehicle was stolen in 2008.
"Opposite Party (insurance company) is directed to pay IDV (Insured Declared Value) values of vehicle Rs 2.56 lakh... We also award Rs 50,000 as compensation for harassment and litigation expenses," the forum said.

The forum said that even though all the formalities were completed by the complainant after the theft, still the claim was not paid which was clear case of "deficiency" on behalf of the insurance company, which "deliberately neither repudiated the claim nor paid the claimed amount without any rhyme and reason".
The travel agency had taken an insurance cover for its vehicle with IDV of Rs 2.56 lakh.
The vehicle went missing in October 2008 during a journey to Agra and subsequently an FIR was lodged under section 379 (theft) of IPC and intimation was given to the insurance firm immediately, the agency said.

The firm initially appointed a surveyor but later it neither repudiated the claim nor did it pay the claimed amount for 24 months and, aggrieved by this, the travel agency filed a consumer complaint in this regard, it said.
A notice was served on the firm. However, it did not contest the case and the proceedings were held ex-parte.