Insurance Company Ordered to Pay Rs 96,000 for Wrongly Rejecting Claim on 10-Year-Old Diesel Car
The Karnal District Consumer Commission has directed an insurance company to pay Rs 60,888 to a car owner after it wrongly rejected his accident claim. The insurer had refused the claim because the diesel car was over 10 years old, citing court rulings that prohibit diesel vehicles older than 10 years and petrol vehicles older than 15 years from being driven in the National Capital Region (NCR).
A bench of president Jaswant Singh and members Neeru Agarwal and Sarvjeet Kaur also awarded Rs 25,000 as compensation and Rs 11,000 as litigation costs, bringing the total payout to Rs 96,888. The order held that the insurer cannot deny liability after issuing the policy.
“The complainant insured his vehicle in March, 2024. The opposite party received the premium amount from the complainant and issued the policy, valid from March, 2024 to March, 2025, after verifying documents and also the age of the vehicle. When the opposite party was fully aware of the guidelines of the Supreme Court, the Delhi government circular, and notifications, then as to why did the company issue the policy in question?” the commission said on June 16.
