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Supreme Court Ruling on Insurance Claims

The Supreme Court of India heard a case about a consumer who had their truck stolen and filed an insurance claim. The insurance company rejected the claim, citing a technical breach of the policy condition to provide immediate notice of the loss. However, the consumer explained that they were delayed in filing because the police had asked them to assist in searching for the stolen truck. The Supreme Court found that the insurance company could not reject the claim solely on technical grounds, and that if the reason for delay is satisfactorily explained, such a claim cannot be rejected. The rejection of claims for purely technical reasons without valid grounds would undermine public confidence in the insurance industry.

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Shubham Chaudhary
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32 views10 pages

Supreme Court Ruling on Insurance Claims

The Supreme Court of India heard a case about a consumer who had their truck stolen and filed an insurance claim. The insurance company rejected the claim, citing a technical breach of the policy condition to provide immediate notice of the loss. However, the consumer explained that they were delayed in filing because the police had asked them to assist in searching for the stolen truck. The Supreme Court found that the insurance company could not reject the claim solely on technical grounds, and that if the reason for delay is satisfactorily explained, such a claim cannot be rejected. The rejection of claims for purely technical reasons without valid grounds would undermine public confidence in the insurance industry.

Uploaded by

Shubham Chaudhary
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd

A CASE ON

CONSUMER PROTECTION
INTRODUCTION

● In the Supreme Court of India Civil Appeal no.: 15611 of 2017


● Petitioner Om Prakash
● Respondent Reliance General Insurance
● Date of Judgment 4th October, 2017
● Bench Hon’ble Mr. Justice R.K. Agrawal; Hon’ble Mr. Justice S. Abdul
Nazeer

● The Hon’ble Supreme Court held that the Insurance Company


cannot reject a claim on Technical ground.
FACTS OF THE CASE:
● The appellant truck, bearing Registration
[Link]-21-F-0462, insured with Respondent
No.1 from 10.03.2010 to 09.03.2011.
● Vehicle was stolen from Chopanki, Bhiwari
Rajasthan on 23.03.2010 at about 9:00 p.m.
● FIR was lodged, on 24.03.2010, in Police
Station Tapkura, District Alwar, Rajasthan,
under Section 379 IPC.
● Constand follow up was made with police
and the truck driver from 29.03.2010 to
30.03.2010
FACTS OF THE CASE:
● On 31.10.2010, the appellant lodged the insurance
claim.
● Investigator was appointed by the Respondent-
company, who, after verification, confirmed the
factum of theft.
● Amount of Rs.7,85,000/- was approved by the
Corporate Claims Manager.
● After so many requests finally, the appellant
served a legal notice, dated 09.08.2011, to the
respondent-company.
● But the claim was repudiated citing breach of
Condition No. 1, i.e. immediate information about
the loss/theft of the vehicle.
”
Whether the Insurance Company can
reject claim on Technical ground?

ISSUE ”
Arguments in favor of the appellant: 

The FIR and other documentation was done on


time but as the police asked appellant and the
owner to stay with them in order to help them for
tracing out the truck , the process was time
consuming.

The police compelled the appellant to accompany


them while searching the truck, which distracted
them from filing a claim.
 
     
Arguments in favor of the
Respondent’s:
Condition No.1 of the Insurance Policy states that
notice shall be given in writing to the company
immediately upon the occurrence of any accidental
loss or damage in the event of any claim and thereafter
the insured has to give all such information and
assistance as the company may require.
Judgment by:
 Mr. S. Abdul Nazeer observed

That it is common that the owner will straightaway look for vehicle
rather than going for claim that very moment.
The decision of the insurer to reject the claim has was not based on
valid grounds.
Rejection of the claims on purely technical grounds in a mechanical
manner will result in loss of confidence of policy-holders in the
insurance industry.
Conclusion:         

Hence, it is concluded that Rejection of the claims on technical


grounds in a mechanical manner will result in loss of confidence of
policy-holders in the insurance industry.

If the reason for delay in making a claim is satisfactorily explained,


such a claim cannot be rejected on the Technical grounds.
THANK YOU !!

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