Insurance policy effective as soon as payment made: consumer court to Tata AIG General Insurance

The insurance policy comes into effect as soon as the first premium/instalment is paid, Thane District Consumer Forum has ruled, allowing the claim of a person whose vehicle met with accident within hours of taking out the policy.


The bench of Forum President R B Somani and Member Jyoti Iyer held yesterday that Darshan G Deore, the complainant, was entitled to get Rs 3,35,280 from Tata AIG General Insurance Company, after deduction of depreciation amount.

It also ordered payment of Rs 10,000 towards mental suffering and Rs 1,450 towards legal expenses.

Deore had taken out the vehicle policy on October 25, 2008 at 20.34 hours, paying first premium on the spot. But his car had an accident immediately thereafter.

The company rejected his insurance claim, saying that policy was effective from October 26, 2008.

But dismissing the submission of the insurance company, the Forum ruled that policy becomes effective from the time the payment is made.

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