Relying on SC order, Forum awards Rs 3.36 lakh insurance claim

Taking a leaf from a SC order, Raigadh District Consumer Disputes Redressal Forum went back on its decision and awarded an insurance claim of Rs 3.36 lakh to a man whose vehicle met with a mishap in 2008, and was earlier denied relief stating that the SUV was being used as passenger vehicle.
In their order, Forum President Sneha S Mhatre and Member S S Patil referred to the ruling of the Supreme Court in the matter of Dharmendra Goel Vs Oriental Insurance Company, where the apex court had observed, "It must be born in mind that Insurance Co. Often act in an unreasonable manner and after having accepted the value of a particular insured good/vehicle disown that very figure on one pretext or the other when they are called upon to pay the compensation".

"This take it or leave it attitude is clearly unwarranted not only as being bad in law but ethically indefensible."
Counsel Shankar Bodulla, who appeared for claimant Hasanmia Shaikh Usman Dalvi from Panvel told the Forum that his client owned a Scorpio for personal use. He had taken a vehicle insurance from New India Assurance Company for the period of October 2007 to 2008.
On May 21, 2008, when the vehicle was on its way from Bhiwandi to Malkapur (Buldana), it met with an accident near Malkapur. The vehicle was badly damaged and the complainant lodged a claim with the insurance company for Rs 6 lakh, the Forum was told.

However, the insurance company rejected the claim stating that the vehicle, which was meant for personal use, was being used as a passenger vehicle at the time of the accident.
The complainant challenged the same and filed a complaint with the Forum which also agreed with the version of insurance company and in its order of 2010 rejected the claim.
The order of the Forum was challenged by the complainant at the State Consumer Commission, which admitted the appeal and set aside the order of the District Forum and asked the insurance company to pay the claim to Dalvi.