A consumer panel in Uttarakhand has ordered an insurance company to compensate a Dehradun man for damages to his commercial vehicle, which was involved in a crash in 2017. The insurer, United India Insurance Co Ltd (UIICL), had initially denied the claim, citing overloading as the reason. However, the state consumer commission found no evidence to support this allegation.
The vehicle, owned by Surat Dass, was insured with UIICL in July 2016. On January 21, 2017, the vehicle met with an accident on the Lakhamanda-Nada road when a retaining wall collapsed, resulting in the deaths of three passengers. Dass informed the insurer and filed a First Information Report (FIR). After submitting the necessary documents, Dass’s claim remained unresolved, prompting him to file a complaint with the district consumer commission.
The district consumer commission ruled in Dass’s favor, ordering the insurer to pay ₹64,000 for vehicle damage, ₹30,000 for mental agony and litigation costs, and 9% annual interest from the date of filing the complaint. The state consumer commission has now upheld this decision, directing UIICL to compensate Dass.
The case highlights the importance of insurance companies providing fair and timely compensation to policyholders. In this instance, the insurer’s decision to deny the claim based on an unproven allegation of overloading was deemed unjustified. The consumer panel’s ruling serves as a reminder to insurance companies to act in good faith and provide adequate compensation to policyholders in the event of a claim.
The incident occurred in 2017, but the case was recently resolved in July 2025, with the state consumer commission ordering the insurer to compensate Dass. The delay in resolving the claim and the need for Dass to file a complaint with the district consumer commission underscore the challenges faced by policyholders in seeking fair compensation from insurance companies.