Now Reading: Chandigarh consumer commission upholds Rs 8.5 lakh award against Tata AIG
-
01
Chandigarh consumer commission upholds Rs 8.5 lakh award against Tata AIG
Chandigarh consumer commission upholds Rs 8.5 lakh award against Tata AIG
The Chandigarh state consumer commission has dismissed Tata AIG General Insurance's appeal against a district order directing it to pay Rs 8.5 lakh with 9% annual interest to Bachittar Singh. His Mahindra…
The Story in Brief
The Chandigarh state consumer commission has dismissed Tata AIG General Insurance's appeal against a district order directing it to pay Rs 8.5 lakh with 9% annual interest to Bachittar Singh. His Mahindra Scorpio was stolen in Delhi seven days after he bought the vehicle and had the ownership transferred. The insurer rejected the claim because the insurance policy had not been transferred to his name. The commission held that the theft occurred within the 15-day statutory period for applying for policy transfer, and that Section 157(1) provides for deemed transfer of insurance along with ownership. It also imposed Rs 15,000 costs on the insurer for unnecessary litigation.
The Indian Opinion
Insurers often hide behind technicalities to avoid payouts, but the law on deemed transfer of insurance with vehicle ownership is clear. The commission rightly called out the company for unnecessary litigation when the theft occurred within the 15-day window allowed for policy transfer. The narrative that buyers lose all cover until paperwork reaches the insurer is one-sided and ignores Section 157(1) of the Motor Vehicles Act. The test now is whether Tata AIG wastes more court time appealing to the National Commission.
Sources (2): hindustantimes.com, hindustantimes.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
