Motor Insurance: Insurance firm told to pay Rs 2.75 lakh as value of salvage for damaged car

The UT District Consumer Disputes Redressal Forum has directed United India Insurance Company Limited to pay Saurav Bhatti, a resident of Sector 40, Rs 2.75 lakh as a value of salvage, Rs 50, 000 for mental harassment and agony, and Rs 10, 000 as cost of litigation.

Bhatti owned a Maruti Swift car that met with an accident on July 6, 2010, due to sudden appearance of a stray animal in front of it. The vehicle was damaged, and the complainant also suffered injuries.

The car was taken to the authorised service centre, Berkeley Automobiles, Chandigarh, for repair, and a claim was lodged with the United India Insurance Company Limited, Chandigarh.

The surveyor appointed by the company noted down the statements of the complainant’s relatives, who had shifted the damaged vehicle to the workshop, as Bhatti was hospitalised. Bhatti stated that the car was declared as total loss by the surveyor and the insurance firm.

On August 12, 2010, the insurance company claimed that the vehicle was wrongly insured for Rs 4.60 lakh and that the complainant had been given 20-per cent no claim bonus. Also, there was no record of previous insurance with them.

The complainant claimed that at the time of subscribing to the policy, the agent of the insurance company was handed over a copy of the registration certificate, driving licence, earlier insurance, along with all other documents required. At the time of insuring the vehicle, the value of the vehicle was assessed as Rs 4.60 lakh.

Apart from this, the complainant said that he had to shell out Rs 28,000 as parking charges demanded by the workshop. Also, due to non-settlement of the claim of the complainant, he had to dispose of the vehicle in salvage for Rs 1.85 lakh.

The insurance firm claimed that the complainant had availed a claim through the previous policy with the firm. Hence, the firm stated that the complainant was not entitled to a no-claim bonus in his present insurance policy.

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