Automobile Desk: Often after vehicle accidents, insurance companies try to reject claims under the guise of driving license. But if the company refuses to pay the money citing deficiency in the license, then it would be wrong to assume that the vehicle owner's rights have been lost. Recently, the West Bengal State Consumer Disputes Redressal Commission, while hearing an important case, rejected the arguments of the insurance company and gave a big decision in favor of the victim customer. The Commission has directed the insurance company to pay the claim amount along with interest and also compensate the customer for the mental harassment he suffered.
The whole matter is related to the accident of a luxury car and the claim dispute that arose after that. The victim had a Skoda New Laura car, which was insured at an IDV (Insured Declared Value) of Rs 6.95 lakh. When the car met with an accident in 2014, the authorized service center estimated the repair cost to be around Rs 5.28 lakh. When the vehicle owner demanded the insurance amount from HDFC General Insurance Company, the company flatly refused to pay the claim.
The company's reasoning behind rejecting the claim was that the person who was driving at the time of the accident did not have a correct and valid driving license. The insurance company claimed that the driver also had another license from Nagaland, which was fake. The company shirked its responsibility, calling it a direct violation of Section 6 of the Motor Vehicle Act. After this the matter reached the doorstep of the Consumer Commission.
The Commission deeply understood the arguments of both the parties in this matter and said in very clear words that breaking the rules of the Motor Vehicle Act and violating the insurance policy are two different situations. If a driver has two licenses or there is a flaw in the licensing process, it may be a violation of the law and separate action can be taken against the person concerned. But on this basis alone, the insurance company cannot run away from its financial responsibility nor can it completely cancel the claim of the policyholder.
In this decision, the Commission has issued an order to the insurance company to repay the amount of Rs 3.5 lakh with 6 percent annual interest from September 7, 2016. If the company does not make this payment within the stipulated period of 45 days, then it will have to pay interest at an increased rate of 9 percent. Apart from this, the insurance company has also been instructed to pay a separate compensation of Rs 1 lakh to the customer in lieu of years of hassle and mental stress for the claim. However, the Commission did not accept the claim of paying the entire IDV amount (Rs 6.95 lakh) demanded by the vehicle owner.
This decision is a big example for vehicle owners. Usually, insurance companies take advantage of paper deficiencies and reject claims. This decision proves that every rejection letter of the insurance company is not the final truth. The car owner should always keep in mind that before handing over the car, he should check the license of the driver and his ability to drive, but even after this, if the company arbitrarily rejects the claim, then your rights can be achieved by approaching the consumer court.
