NCDRC asks insurance firm to pay over Rs 7L for damaged car

The apex consumer commission has directed an insurance firm to pay over Rs 7 lakh to a man for his damaged car while dismissing the company's contention that its agent had prepared a forged report related to the accident.
The National Consumer Disputes Redressal Commission (NCDRC), presided by Justice V B Gupta, asked Cholamandalam MS General Insurance Company Ltd to pay Rs 7,50,488 to Delhi resident Abhijat Saini.
The state commission had upheld a district forum's order by which the firm was asked to pay the money to Saini.
"...There is nothing on record to show that petitioners (firm and its official) took any initiative for taking any criminal proceedings against respondent no.2 (agent), when it came to their knowledge that the cover note was forged one.

"Once it came to their knowledge, that its agent had issued a back dated cover note, then petitioners ought to have cancelled the so called forged cover note," it said.
It noted that there was nothing on record to show that the firm had cancelled the cover note or took any other legal steps in this regard.

"Thus, this plea of petitioners falls on the ground that cover note issued to the insured was forged and was back dated," it said.
Regarding firm's contention that there was a delay on the part of Saini in informing it about the accident, the NCDRC said noted that it was an admitted fact that he had immediately informed police about the accident.

"Though there was some delay in informing the petitioners regarding the accident, but as per the insurance policy, no specific period has been mentioned," it added.