Consumer protection: Insurer held liable for delay in claim settlement

National Insurance ordered to pay interest and costs after consumer panel finds deficiency in service despite partial settlement of ₹73 lakh claim

Ramesh Kanji Cham owned a motor vessel named “Miraj”, which he used in theshipping business to transport materials. Cham insured the boat with National Insurance from February 8, 1997, to February 7, 1998.

 

On May 11, 1997, the vessel, which was docked at Abra Berth near Deira in Dubai Creek, keeled over on its left side. Upon learning about the mishap, Cham immediately notified the insurer and later submitted all the requisite documents. He registered a Marine Hull claim for DHS 7.56 lakh (about ₹73 lakh).

 

After five years of protracted correspondence, the insurer offered to pay only ₹21.44 lakh.