Observing that nature of use of a vehicle cannot be ground for an insurance company to repudiate a theft claim, a consumer forum directed TATA AIG Gen Insurance to pay a compensation of Rs 3.50 lakh to a Sewri resident whose car was stolen in 2012.
The owner used to give the car on hire, the reason cited by the insurance firm for repudiating the claim.“On consideration of facts and circumstances in the case, the law seems to be well settled that in case of theft of vehicle, nature of use of the vehicle cannot be looked into and the insurance company cannot repudiate the claim on that basis,“ the Central Mumbai District Consumer Disputes Redressal Forum said. Vilas Vaitty had insured the vehicle r Rs 4 lakh. On April 4, 2012, the vehicle or Rs 4 lakh. On April 4, 2012, the vehicle was stolen from outside a guest house in Nerul. A complaint was lodged and the insurance company was informed. On October 9, 2012, Vaitty was told that the claim had been repudiated. He filed a complaint before the forum in 2014.
The insurance company , in its reply, said the policy subscribed to by Vaitty was called the Private Car Package Policy . “As per policy condition, the vehicle cannot be given on hire. Therefore, he is not entitled to the insurance claim and the complaint is lia ble to be dismissed with cost,“ it said.
The forum however said even if there is breach of condition, in view of the law aid down by the Supreme Court, the complainant is entitled for the claim.
Source : The Times of India
Date : 24th March 2015