Now Reading: J&K consumer commission raps Tata AIG, Bajaj Allianz for unfair claim repudiation
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J&K consumer commission raps Tata AIG, Bajaj Allianz for unfair claim repudiation
J&K consumer commission raps Tata AIG, Bajaj Allianz for unfair claim repudiation
The Jammu & Kashmir State Consumer Disputes Redressal Commission has held Tata AIG General Insurance guilty of deficiency in service for repudiating fire insurance claims by treating standard Kashmiri buildings with wooden…
The Story in Brief
The Jammu & Kashmir State Consumer Disputes Redressal Commission has held Tata AIG General Insurance guilty of deficiency in service for repudiating fire insurance claims by treating standard Kashmiri buildings with wooden plank roofs as 'kutcha constructions'. The commission ordered the insurer to pay Rs 30.97 lakh to three firms whose walnut stocks were destroyed in a fire, noting that such roofs are standard in Kashmir due to heavy snowfall and that the 'kutcha' warranty was unreasonable.
In a separate order, the same commission dismissed an appeal by Bajaj Allianz General Insurance against a district consumer forum's order to pay a claim for a house that collapsed due to land subsidence. The commission held that once the insured shows loss from a covered peril, the burden shifts to the insurer to disprove it. It rejected the insurer's reliance on a surveyor's opinion based on a casual inspection without scientific soil testing, noting three other buildings in the locality had also collapsed simultaneously.
The Indian Opinion
Insurance companies often hide behind fine print to deny claims, but these J&K orders show courts can see through such tactics. Tata AIG's refusal over 'kutcha' roofs in Kashmir, where such construction is standard, was rightly called unreasonable. Similarly, Bajaj Allianz's reliance on a surveyor's casual visit without soil testing was rejected. The real test now is whether these verdicts prompt insurers to train staff on regional realities and policyholder rights, or if they will continue to force every claim into litigation. Watch for whether the companies appeal or settle.
Sources (2): livelaw.in, livelaw.in (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
