Nation Current Affairs 15 May 2017 Panel disallows high ...

Panel disallows high claim for repair

Published May 15, 2017, 6:36 am IST
Updated May 15, 2017, 6:36 am IST
Owner originally claimed Rs 8.3 lakh for damages to luxury car.

Thiruvananthapuram: The National Consumer Disputes Redressal Commission (NCDRC) upheld a lower court order that directed an insurance company to allow just Rs 1.89 lakh for the repair of a Mercedes-Benz though the owner originally claimed Rs 8.3 lakh for damages.

The insurance company investigation found that spurious parts were added to the car after procuring fake bills from unauthorised dealers.


As per a complaint filed by Babu Paul, Thrissur, his car met with an accident in June 2001.

Since the National Insurance Company rejected his high claims, he moved Thrissur Consumer Disputes Redressal Forum seeking the costs and additional `1 lakh in compensation.

The insurance company maintained that it denied the claim as the car was repaired against their direction and spare parts worth Rs 7.68 lakh were purchased from one agency in Thrissur.

The investigators went to the agency to find the source of the spare. However, they provided some bills from non-existent firms.

Further, the insurance company obtained quotations from Rajasree Motors, Kochi, an authorised Mercedes-Benz service dealer. They computed that the loss was only around Rs 4.71 lakh.

Again, a joint inspection on the car by all stakeholders found the entire parts not replaced as per final bill submitted.

The few replaced parts were duplicate ones. The forum ordered insurance firm to pay `1.89 lakh, and an appeal filed in Chandigarh Consumer Disputes Redressal Commission was also dismissed.

Further, during the hearing of a final appeal, NCDRC found that there was no irregularity or illegality in the lower forum order.