Consumer body upholds earlier order against Reliance Insurance, orders it to pay Rs 4 lakh

Reliance had appealed against the earlier order, passed in May 2012, directing the company to pay Rs 4 lakh to the complainant, along with interest of 2 per cent per annum, and an additional Rs 15,000 as costs of litigation.

The complainant, Dharmender Balhara, stated that he had bought a Mahindra Logan vehicle from another man, which was duly insured for Rs 4 lakh with Reliance Insurance, from October 2010 to October 2011. The vehicle was transferred to Balhara’s name in December 2010 and the complainant said he then sent a letter to the company seeking transfer of the insurance policy to his name.

The vehicle, however, was involved in an accident with a truck near the Military Cantt in Hisar, a few days later. A surveyor was appointed to gauge the damage, and the surveyor after inspection estimated the cost of repair to be Rs 7,59,968.

The insurance company, however, rejected Balhara’s claim on the ground that he had failed to intimate it, with regard to transfer of policy, within 14 days of the vehicle being transferred in his name.

The commission,however, observed that intimation with regard to the transfer of the vehicle was sent within 14 days from the date of transfer of the vehicle, but if the

... contd.