In a significant ruling upholding policyholder rights, the District Consumer Disputes Redressal Commission (DCDRC) in Noida has directed Sriram General Insurance Company Limited to compensate a customer whose electric scooter was stolen. The insurer must pay the claim amount of Rs 67,000 along with 6% annual interest for failing to settle the legitimate insurance request.
The Case of the Stolen Electric Scooter
The dispute originated from policyholder Mange Ram, a resident of Dankaur. He had purchased an electric scooter from Hero Motors and secured an insurance policy with Sriram General Insurance on October 26, 2022, valid for one year. The unfortunate incident occurred on December 10, 2022, when Mange Ram's friend, Satyendra Singh, borrowed the vehicle. After parking it near a liquor shop in Greater Noida, Satyendra Singh returned to find the scooter missing.
Acting promptly, a police complaint was filed regarding the theft the same day. Mange Ram also reported the incident to Sriram General Insurance. The company dispatched a surveyor to inspect the site the following day. Despite submitting all required documents in time, including the final police investigation report, Mange Ram received no communication or settlement from the insurance provider.
Insurer's Inaction Leads to Legal Battle
"The surveyor assured me that my insurance claim would be settled within the stipulated time, but there was no response from the insurer," Mange Ram informed the consumer commission. He made multiple efforts to trace the vehicle and fully cooperated with the police investigation. Although the thieves were eventually arrested, the police closed the case after failing to recover the scooter.
Frustrated by the insurer's silence and what he perceived as an arbitrary rejection, Mange Ram approached the Noida DCDRC in July 2024. He sought not only the settlement of his claim but also a penalty for the company's conduct. The commission, presided over by President Anil Kumar Pundir and member Anju Sharma, issued notices to the insurance company. However, the insurer failed to respond.
Consumer Court's Verdict and Penalty
With no reply from Sriram General Insurance, the matter proceeded ex-parte. The final hearing was held on April 21, 2025, and the order was passed in favor of the complainant on December 11, 2025. After examining the evidence, the commission found the insurance company guilty of deficiency in service under the Consumer Protection Act.
The DCDRC's order includes several directives for the insurer:
- Payment of the insured amount of Rs 67,000.
- 6% per annum interest on the amount from the date of the complaint filing until actual payment.
- An additional Rs 2,000 as compensation for mental agony and harassment caused to the policyholder.
- Rs 1,000 towards litigation costs.
The commission has given the insurance company 30 days to comply with the order from the date of receiving the copy. This ruling reinforces the accountability of insurance providers and the effectiveness of consumer forums in addressing grievances against unfair corporate practices.
