Jodhpur Consumer Commission Orders ICICI Lombard to Pay Rs 2.37 Lakh for Deficient Insurance Service
In a significant ruling, the District Consumer Disputes Redressal Commission, Jodhpur-I, has directed ICICI Lombard General Insurance Company Ltd. to pay compensation to a policyholder after finding a clear deficiency in service regarding the settlement of a motor insurance claim. The decision was announced on Wednesday, highlighting the commission's stance on protecting consumer rights in insurance disputes.
Commission's Detailed Order and Compensation Breakdown
Allowing the complaint, the Commission bench, comprising Chairman Rajkumar Suthar and member Dilshad Ali, issued a comprehensive order. The insurer has been mandated to pay Rs 2,26,080, which corresponds to the loss amount assessed by the surveyor. Additionally, the company must provide Rs 5,000 as compensation for the mental agony endured by the policyholder and Rs 6,000 to cover litigation costs incurred during the proceedings.
The total compensation amounts to Rs 2,37,080, and it must be paid within a strict timeframe of two months from the date of the order. Failure to comply with this directive will result in the accrual of interest at a rate of 6% per annum on the outstanding amount, emphasizing the urgency and seriousness of the commission's ruling.
Background of the Case and Policyholder's Plight
The complaint was formally filed by Ruparam, a resident of Bhopalgarh in Jodhpur district. He had insured his Mahindra car under a comprehensive package policy in January 2019, seeking full protection for his vehicle. According to the detailed case records, the insured vehicle suffered significant damages on October 6, 2019, when a stone struck the underside while the car was in motion. This impact led to severe engine failure, rendering the car inoperable and necessitating immediate repairs.
Faced with the insurer's refusal to honor the claim, Ruparam took matters into his own hands. He proceeded to get the vehicle repaired at his own expense, incurring a substantial cost of Rs 2.51 lakh. ICICI Lombard had declined the claim, citing specific policy conditions and the findings of their survey, which argued that the engine damage was not covered under the terms of the insurance agreement.
Commission's Legal Analysis and Final Verdict
After a thorough examination of all relevant documents, including the policy terms, repair invoices, and the surveyor's assessment report, the Commission arrived at a decisive conclusion. The bench held that the insurer could not legitimately deny liability on the grounds that engine damage was excluded from coverage. This was because no such explicit exclusion was specified under the own-damage cover during the active policy period when the incident occurred.
The Commission firmly stated that the non-settlement of this admissible claim constituted a clear deficiency in service on the part of ICICI Lombard. This deficiency not only caused financial hardship to the policyholder but also led to unnecessary mental distress and legal battles. The ruling serves as a reminder to insurance companies to adhere strictly to policy terms and act in good faith when processing claims, ensuring that consumers receive the protection they are entitled to under the law.
