Supreme Court of India was dealing with the petition challenging the final judgment and order dated 03.08.2021 passed by the National Consumer Disputes Redressal Commission at New Delhi, by which, the appellant is denied the relief of settling the claim under the insurance policy.
Brief Facts:
The appellant was the registered owner of the Truck. The said vehicle was insured with the respondent insurance company. The said vehicle was stolen. A FIR was immediately lodged in the Police Station. On the same day, the complainant also informed the insurance company as well as the Regional Transport Office (RTO) regarding the theft of the Truck. After giving information regarding theft, the appellant submitted all the documents sought by the insurance company, but the insurance company failed to settle the claim. The appellant filed the consumer complaint before the District Consumer Disputes Redressal Commission. The District Consumer Disputes Redressal Commission disposed of the said complaint. The appellant submitted an application before the RTO for obtaining duplicate certified copy of the certificate of registration of the Truck. However, RTO denied to issue duplicate certified copy of the certificate of registration. Thereafter, the appellant submitted an application before the insurance company along with photocopy of the certificate of registration and registration particulars, as provided by the RTO. Despite the above, the claim was not settled and therefore, the appellant filed a fresh consumer complaint before the District Consumer Disputes Redressal Commission. The said District Commission dismissed the said complaint. This order passed by the District Commission has been confirmed by the State Commission and thereafter, by the National Consumer Disputes Redressal Commission.
SC’s Observations:
After hearing both the sides SC stated that when the appellant had produced the photocopy of certificate of registration and the registration particulars as provided by the RTO, solely on the ground that the original certificate of registration (which has been stolen) is not produced, non-settlement of claim can be said to be deficiency in service. Therefore, the appellant has been wrongly denied the insurance claim.
SC stated that the insurance company has become too technical while settling the claim and has acted arbitrarily. The appellant has been asked to furnish the documents which were beyond the control of the appellant to procure and furnish. Once, there was a valid insurance on payment of huge sum by way of premium and the Truck was stolen, the insurance company ought not to have become too technical and ought not to have refused to settle the claim on non-submission of the duplicate certified copy of certificate of registration, which the appellant could not produce due to the circumstances beyond his control.
SC further stated that in many cases, it is found that the insurance companies are refusing the claim on flimsy grounds and/or technical grounds. While settling the claims, the insurance company should not be too technical and ask for the documents, which the insured is not in a position to produce due to circumstances beyond his control.
SC Held:
After evaluating submissions made by both the parties the SC held that “the order passed by the District Consumer Disputes Redressal Commission, Durg, Chhattisgarh, dismissing the complaint filed by the appellant and the orders passed by the State Commission and National Consumer Disputes Redressal Commission, confirming the same deserve to be set aside and are hereby set aside.”
Case Title: Gurmel Singh v. Branch Manager, National Insurance Co. Ltd.
Bench: J. M.R. Shah and J. B.V. Nagarathna
Citation: CIVIL APPEAL NO. 4071 OF 2022
Decided on: May 20, 2022
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