Chandigarh State Commission Holds New India Assurance Company Liable For Rejecting Insurance Policy Due To Unreliable Evidence

The State Consumer Disputes Redressal Commission, Chandigarh presided by Justice Raj Shekhar Attri (President) and Mr. Rajesh K. Arya (Member) held 'New India Assurance Company Limited' liable for rejecting the insurance policy of the complainant on the basis of unreliable evidence about alcohol consumption by the complainant. Brief facts: The complainant insured his Honda Jazz car for ₹4,80,000/- with New India Assurance Company Ltd (Appellant), from 15.12.2022 to 14.12.2023. Unfortunately, around 4/4:30 AM on 04.02.2023 the car met with an accident while the complainant tried to save some street dogs. Due to severe injuries, the police took the complainant to hospital in an unconscious state. After being declared fit, the police recorded the complainant's statement. Subsequently, to claim the insurance policy the complainant submitted the requisite documents for surveyor's report. However, his claim was rejected. Feeling aggrieved, the complainant filed a complaint in the District Consumer Disputes Redressal Commission-I, U.T. Chandigarh. Relying on record of the PGIMER, the insurance company alleged that the complainant was under the influence of alcohol and thus, the rejection of claim was valid. Through order dated 07.10.2024, the District Commission partly allowed the complaint and directed the insurance company to pay ₹4,79,000/- with 9% interest along with ₹20,000/- as compensation and ₹10,000/- as litigation costs. Dissatisfied by the decision of the District Commission, the Appellant filed an appeal before the State Consumer Disputes Redressal Commission, Chandigarh (“State Commission”). Contentions of New India Assurance Company: The Appellant argued that the rejection of claim was valid under clause 2(c) of Section 1 of the Insurance Policy but the District Commission failed to consider it. Further, there were was no reliable eyewitness as the accident took place early in the morning. They also contended that the medical records confirmed that the complainant was under the influence of alcohol. Observation of the State Commission: The Commission observed that there was no blood test or breath analyzer test taken to determine the extent of alcohol consumption of the complainant. Immediately after the accident, the complainant was taken to hospital by the police who supplied the required information. But the doctor who made the medical report stated the information supplied to be unreliable as the person was not related to the complainant nor he has witnessed the accident. Thus, the commission pointed that the claim cannot be repudiated on basis of such unreliable evidence about alcohol consumption. Therefore, the State Commission upheld the decision of the District Commission and the appeal was dismissed. Case title: New India Assurance Company Limited & Anr vs. Shubham Khattar Case No: Appeal No. A/382/2024 Date of Pronouncement: 04.12.2024 Click Here To Read/Download Order

Chandigarh State Commission Holds New India Assurance Company Liable For Rejecting Insurance Policy Due To Unreliable Evidence

Amrisha Kumari

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