The State Consumer Disputes Redressal Commission, Chandigarh, has ruled in favor of Shubham Khattar, a policyholder of New India Assurance Company Limited, ordering the insurance company to pay him compensation for the loss of his Honda Jazz car in an accident. The accident occurred on February 4, 2023, when Khattar was trying to save street dogs and was rushed to the hospital, where he was declared fit and able to give a statement to the police.
Khattar had purchased a policy with New India Assurance Company Limited for his car worth ₹4,80,000 from December 15, 2022, to December 14, 2023. However, when he made a claim for the wreckage of his car, the insurance company rejected it, citing that Khattar was under the influence of alcohol at the time of the accident, as per his medical records from the PGIMER (Post Graduate Institute of Medical Education and Research).
The District Consumer Disputes Redressal Commission-I, UT Chandigarh, partly allowed the complaint and ordered the insurance company to pay ₹4,79,000, with 9% interest, ₹20,000 as compensation, and ₹10,000 as litigation costs. New India Assurance Company Limited, dissatisfied with this decision, filed an appeal with the State Consumer Disputes Redressal Commission, Chandigarh.
The State Commission agreed with the District Commission’s decision, ruling that the insurance company’s rejection of the claim was not valid. The Commission observed that there was no reliable evidence of Khattar’s alcohol consumption, as there was no blood test or breath analyzer test conducted, and the medical report was unreliable since it was not made by a person related to Khattar or a witness to the accident. As a result, the State Commission dismissed the appeal, upholding the decision of the District Commission.