J&K consumer panel orders New India Assurance to pay Rs 9.95 lakh

The J&K State Consumer Disputes Redressal Commission has directed New India Assurance Co Ltd to pay Rs 9,95,194 to M/s Lakhan Pal Fabricators for an unsettled insurance claim. The claim arose from a loss suffered on July 3, 2009. The insurer had argued the complaint, filed on September 25, 2014, was barred by limitation.

The Commission noted the insurer's own written statement disclosed the claim had been inadvertently tagged with other claims and remained unprocessed. It held the claim was under the insurer's active consideration until at least June 15, 2013, making it a continuing cause of action and not time-barred.

On merits, the Commission relied on the surveyor's report that assessed the loss at Rs 4,36,050, noting the complainant did not provide independent expert evidence for the higher claim. The Commission awarded Rs 4,36,050 towards loss, Rs 5,58,144 for delay, and Rs 1,000 for mental agony. The amount must be paid within 30 days, failing which 8% annual interest will apply.