Reliance General Insurance asked to pay Rs 50,000 compensation

Holding that details on an insurance cover note was binding on the company, the District Consumer Forum here admitted a motor claim and ordered Reliance General Insurance to pay a compensation of Rs 50,000 to the complainant, towards deficient services.
Thane District Consumer Redressal Forum President Umesh Jhavalikar and Member N D Kadam in their order ruled that the proposal-cum-cover note itself is sufficient to prove that the policy is effective from the date of issue till the validity and the client is eligible for benefits under the policy.
The case relates to one Paresh S Mhatre, a resident of Rahnal village in Bhiwandi taluka, who had taken the policy from the company representative by issuing a cheque for Rs 961 on February 22, 2008 for his two wheeler.

He was issued a proposal cum cover note No: 2000701483590 on that day by the representative and the policy was effective for one year from that day.
According to the complainant, he followed up with the company for the policy documents which he never received and the company also did not not bother to reply to his queries.
Meanwhile on April 3, 2008 he met with an accident and his two-wheeler was damaged. He had to incur expenses of Rs 14,200 for the same.

He lodged an insurance claim for the same. The company sent its surveyor and asked him to submit his original bills of repair.

Later, the insurance company rejected his insurance claim and informed him that it cannot be sanctioned as he had not paid any premium and added that the cheque issued by him was misplaced and also the representative was not employed with them anymore.
Aggrieved by the reply of the company and refusal to honour his claim, the complainant filed a claim for Rs 82,000 which was contested by the company.
But the Forum rejected all the submissions of the company and observed that the cover note was issued by the representative of the company and it also bore the code number of the officer issuing it.

Further it stated that the insurance was effective from the date the cover note is issued and hence the company was bound to honour the claim.