Delhi Consumer Commission Dismisses Super Cassettes' Ferrari Insurance Claim; Cites Unrecognised Motorsport Event And Lack Of FMSCI Racing Licence
The District Consumer Disputes Redressal Commission-VIII (Central), Delhi, comprising President Divya Jyoti Jaipuriar and Member Dr. Rashmi Bansal, dismissed a consumer complaint against ICICI Lombard General Insurance Company Ltd., holding that the insurer was justified in repudiating an insurance claim arising from a Ferrari's accident during a high-speed track event.
The Commission held that the event was not recognised by the Federation of Motor Sports Clubs of India (FMSCI), the driver lacked the mandatory FMSCI racing licence, and the complainant had failed to furnish documentary proof authorising the driver to use the insured vehicle in the racing event before the insurer.
Facts
The complainant company, M/s Super Cassettes Industries Pvt. Ltd. , owned a Ferrari F8 Tributo insured under a comprehensive motor insurance policy issued by ICICI Lombard. In addition to the regular policy, it obtained a one-day Endorsement Schedule Policy valid on June 22, 2025, specifically for participating in the "Private Track Event Auto Car India 300KPH Club" held at the National Automotive Test Tracks (NATRAX), Madhya Pradesh.
During the event, the vehicle, driven by Om Raut, a business associate and friend of one of the company's Directors, met with a severe accident, resulting in extensive damage. The estimated repair cost was ₹26,06,419.
Following the accident, the complainant lodged an insurance claim. During the claim assessment, the insurer sought various documents relating to the event, the driver's qualifications, technical reports and documentary proof authorising the driver to use the vehicle. Thereafter, ICICI Lombard repudiated the claim on the grounds of misrepresentation, non-disclosure of material facts and breach of the policy terms and conditions.
Aggrieved by the repudiation of its claim, the complainant approached the District Consumer Disputes Redressal Commission by filing the present consumer complaint.
Contentions of the Insurer
ICICI Lombard contended that the claim was rightly repudiated as the track event was not conducted under a permit issued by the Federation of Motor Sports Clubs of India (FMSCI), the recognised apex body governing motorsports in India. The insurer further contended that Om Raut possessed only a regular civil driving licence and not the mandatory FMSCI Competition Licence required for participation in high-speed motorsport events.
Observations & Decision
The Commission observed that the insurer had repudiated the claim on three grounds: the event was not recognised by the Federation of Motor Sports Clubs of India (FMSCI), the driver lacked the mandatory FMSCI competition licence, and the complainant had failed to establish that the driver was duly authorised to use the vehicle for the racing event.
The Commission noted that FMSCI is the recognised apex body authorised to regulate motorsports in India. As there was no material on record to show that the NATRAX 300KPH Club event had received FMSCI recognition, it held that participation in such an unrecognised event fell outside the scope of the insurance cover despite the IMT-31 endorsement.
It further held that although Om Raut possessed a valid civil driving licence, the licence did not authorise participation in competitive racing events, for which an FMSCI competition licence was mandatory.
With regard to the driver's authorisation, the Commission observed that although the complainant produced a Board Resolution during the proceedings authorising Om Raut to use the Ferrari, including for motorsport events, the document had not been produced before the insurer while the claim was under consideration. Consequently, the insurer could not be faulted for rejecting the claim on that ground.
Holding that all three grounds for repudiation were valid, the Commission found no deficiency in service on the part of ICICI Lombard and dismissed the consumer complaint without costs.
Case Title-M/s Super Cassettes Industries Pvt. Ltd. v. ICICI Lombard General Insurance Company Ltd. & Anr.
Case No. -Consumer Complaint No. DC/77/CC/70/2026
Appearance-For the Complainant: Sh. Sanjay Chauhan, Advocate.