Laxmikanth Khatwate of Dattatreya Colony in Hubballi had taken a general insurance package from Reliance General Insurance for his Hyundai car by paying a premium of Rs 16,606. The insurance was operative from June 2021 till June 2022.
However, in January 2022, the car met with an accident on Hubballi-Karwar Road and was damaged. Laxmikanth approached the insurance company seeking a claim.
However, the company turned down the application, saying that during the accident, additional persons were travelling in the car, which violated the rules of the company.
Challenging this, the petitioner filed a complaint at the district consumer grievances redressal forum saying this amounted to lapses in service and appealed to the Forum to direct the company to settle the claims.
After hearing the complaint, the Forum headed by retired judge Eshappa Bhute said, as the general insurance policy was operative when the accident took place, it is the responsibility of the company to provide insurance benefits. “But, as the company rejected the claim, it has led to a deficiency in services. It is not justifiable to reject the claim citing that six persons were travelling in a five-seater car, and denying insurance coverage,” the Forum decreed and directed the insurance company to pay Rs 4.7 lakh insurance amount within 30 days of issuing the order.
Bhute also directed the company to pay a compensation of Rs 50,000 to the petitioner for causing mental agony and inconvenience, and Rs 10,000 as case expense.