Insurance firm asked to pay nearly Rs four lakh as claim

A consumer forum here has asked an insurance company to pay nearly Rs four lakh as claim to a man, whose insured car was stolen, saying it has no authority to assess the value of the vehicle at a lower side after accepting premium at a higher value.
The West Delhi District Consumer Forum, presided over by Bimla Makin asked United India Insurance Company Ltd to pay Rs3,98,950 to Delhi resident Sanjay Chawla whose car was insured with it. The firm had offered Rs 2.24 lakh after the vehicle's theft instead of Rs 3,99,950, the amount it had insured it for.

The forum also awarded a compensation of Rs 30,000 to the man for the inconvenience and hardship caused to him.
The forum rejected the submission of the company that it had earlier valued the vehicle on much higher side on the basis of concealed and false facts provided by the client.
It said once the insurance firm has accepted premium on a particular Insured Declared Value (IDV) after assessing its value itself, then at the time of making the payment it has no authority to assess the value on a lower side.
"If the insurance company is valuing the vehicle on a higher side at the time of issuing the policy and accepting the premium accordingly, it does not lie in its mouth at the time of paying the claim that the vehicle was valued on a higher side....

"Once the insurance company has accepted the premium on a particular IDV after assessing its value itself then at the time of making the payment it has no authority to assess the value on a lower side," the forum, also comprising its members Urmila Gupta and Smita Shankar, said.
In his complaint, Chawla told the forum that he got his Chevrolet Tavera car insured with the firm but the vehicle got stolen in 2012.
The company approved Rs 2.24 lakh as IDV in full and final settlement of his claim, however, the complainant refused to accept it saying the car was insured for IDV of Rs 3,99,950 and for which insurance premium was duly charged by it, he said.