Now Reading: Chandigarh consumer panel upholds Rs 8.5 lakh award against Tata AIG
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Chandigarh consumer panel upholds Rs 8.5 lakh award against Tata AIG
The Chandigarh State Consumer Disputes Redressal Commission has dismissed Tata AIG's appeal and upheld a Rs 8.5 lakh insurance award to Bachittar Singh, whose Mahindra Scorpio was stolen seven days after he…
The Story in Brief
The Chandigarh State Consumer Disputes Redressal Commission has dismissed Tata AIG's appeal and upheld a Rs 8.5 lakh insurance award to Bachittar Singh, whose Mahindra Scorpio was stolen seven days after he bought it. The insurer had rejected the claim because the policy was still in the previous owner's name.
The commission, led by Justice Raj Shekhar Attri, ruled that Section 157(1) of the Motor Vehicles Act allows a deemed transfer of insurance with ownership. It said the 15-day deadline to apply for policy transfer is procedural and cannot block a genuine claim. Tata AIG was also fined Rs 15,000 for what the panel called 'unnecessary litigation'.
The Indian Opinion
Insurance firms routinely hide behind fine print to reject genuine claims, but this case shows the consumer forum is awake. The company argued a technicality, policy not transferred within 15 days, even though the theft happened just seven days after ownership changed. Panels must now clarify if insurers will be penalised for wasting court time. The real test: will Tata AIG appeal further or set a precedent by paying up quietly?
Source: hindustantimes.com
This story was synthesised by AI from the source linked above.
