Once the premium for a certain assured sum has been charged by an insurance firm under a policy, the same can't be reduced later when a claim is made, a consumer forum here has held.
The New Delhi District Consumer Disputes Redressal Forum gave its order on a complaint against the Oriental Insurance Co Ltd by a Delhi resident for offering him Rs 1.6 lakh on theft of his car which was insured for Rs 1.8 lakh.
The bench presided by C K Chaturvedi asked the insurance firm to pay Rs 2.15 lakh to its policy holder for offering him a reduced amount, after charging premium for a higher value from him.
"After theft and issue of policy, the IDV (Insured's Declared Value) cannot be modified, when premium for higher value was charged. In our view, if some wrong was done at the end of insurance firm, it should look within to recover the loss from concerned official, rather than not honouring the claim.
"The approach and attitude of the opposite party (Oriental Insurance) is of harassment. We hold it deficient in service and we direct it to pay Rs 1.80 lakh. We also award damages of Rs 35,000 to complainant including litigation expenses," the bench presided by C K Chaturvedi said.
The forum's ex-parte order came on the plea of Delhi resident Ram Sarup, who had insured his car for Rs 1.8 lakh for the period from August 25, 2007 to August 24, 2008.
When his car was stolen on August 6, 2008, he had informed the insurance firm who after processing his claim had offered him Rs 1.6 lakh, Sarup had said in his complaint.
The Oriental Insurance was of the view that his car's insured declared value was Rs 1.6 lakh only, though he had been charged premium for insuring his car for Rs 1.8 lakh, Sarup had contended.