Insurance company asked to pay Rs 63,500 for stolen bike

A district consumer forum has held an insurance company guilty of adopting unfair trade practice by rejecting the claim of a man for his stolen motorcycle and directed it to pay Rs 63,500 as compensation.
The forum awarded the amount to north Delhi resident Anurag Gupta and said the Oriental Insurance Company Ltd's repudiation of the claim was on "flimsy, illegal and unjustified grounds".
"We are of the considered view that the repudiation of the claim by the insurance company was on flimsy, illegal and unjustified grounds. We are, therefore of the view that they were deficient in services as well as adopting unfair trade practice and are liable to compensate the complainant," the forum, headed by its president K S Mohi, said.

According to the complaint, Gupta purchased a Bajaj-Pulsar motorbike on May 29, 2011, by paying Rs 74,330 which included insurance, registration, road tax, sale value and accessories.
It further said that all payments were made on June 16, 2011, but the registration certificate is dated July 13, 2011.
The compliant further alleged that on the intervening night of July 3 and 4, 2011, the motor bike was stolen and a complaint was lodged with the police next day itself.

The insurance company rejected the claim on the grounds that the vehicle was not registered in his name on the date of theft of the vehicle.

The forum, however, said the communication of registration of a vehicle by the dealer to the transport authority is only a procedural aspect.
It also took note of the insurance certificate issued to Gupta, which was valid from June 9, 2011 to June 8, 2012.