The State Consumer Disputes Redressal Commission has upheld a decision in favor of a customer, Mansi Joshi, whose insurance claim for an accident-damaged vehicle was rejected by The New India Assurance Company. The insurance company had rejected Joshi’s claim on the grounds that the vehicle’s license had expired, despite the accident not being caused by the driver’s actions. The Pune District Consumer Disputes Redressal Commission had earlier directed the company to pay the insurance amount along with compensation to Joshi for rejecting her claim.
The accident occurred on March 7, 2013, when Joshi’s vehicle was hit from behind by a tempo, causing it to crash into a divider. Joshi submitted all necessary documents to file an insurance claim, but the company rejected it, stating that her husband, who was allegedly driving the car at the time of the accident, did not hold a valid driving license. However, Joshi contended that she was driving the car at the time of the accident, and since the vehicle was hit from behind, the driver’s license status was irrelevant.
The State Consumer Commission agreed with Joshi’s arguments, citing Supreme Court rulings that support her claim. The commission ruled that the rejection of the insurance claim on the sole ground of an expired vehicle license, when the accident was not caused by the driver’s actions, constitutes a lapse in customer service. The commission directed the insurance company to pay Rs 40,897 for the insurance claim, Rs 5,000 as compensation for physical and mental distress, and an additional Rs 10,000 as appeal costs.
The decision was delivered by State Consumer Commission Presiding Member Milind Sonawane and Member Nagesh Kumbre. The commission’s ruling emphasizes the importance of customer service and the need for insurance companies to consider the circumstances of an accident before rejecting a claim. The decision also highlights the role of consumer commissions in protecting the rights of consumers and ensuring that companies adhere to fair business practices. Overall, the ruling is a significant victory for Joshi and a reminder to insurance companies to prioritize customer service and fairness in their decision-making processes.