The State Consumer Disputes Redressal Commission, Mumbai bench, has ruled against Royal Sundaram General Insurance Co. Ltd. for wrongfully rejecting a claim related to a vehicle. The complainant, the registered owner of a Mitsubishi Pajero Sport, had filed the claim.
The vehicle was insured with Royal Sundaram under a comprehensive insurance policy, which covered various risks, including accidents and natural disasters. However, when the complainant filed a claim for damages, the insurance company repudiated it, citing reasons that the commission deemed unjustified.
The commission, consisting of Presiding Member Mukesh Sharma and Member Poonam Maharshi, heard the case and found that Royal Sundaram had failed to provide sufficient grounds for repudiating the claim. The commission held that the insurance company’s actions were a clear violation of the terms and conditions of the policy, as well as the principles of consumer protection.
In its judgment, the commission stated that the insurance company had a duty to act in good faith and settle legitimate claims. By wrongfully repudiating the claim, Royal Sundaram had caused undue financial hardship and distress to the complainant. The commission, therefore, directed the insurance company to pay the complainant the claimed amount, along with interest and costs.
This decision emphasizes the importance of insurance companies acting in good faith and honoring their commitments to policyholders. It also highlights the role of consumer protection bodies in safeguarding the rights of consumers and ensuring that businesses operate fairly and transparently.
The commission’s ruling serves as a reminder that insurance companies must provide clear and valid reasons for rejecting claims, and that policyholders have the right to seek redress if they believe their claims have been wrongfully repudiated. The case sets a precedent for similar disputes and underscores the need for insurance companies to act with integrity and fairness in their dealings with customers.