Nellore: The District Consumer Forum in Prakasam directed an insurance company to pay Rs 1,44,131 to a customer when the firm attempted to deny an insurance claim for repairs to a car after it met with an accident under the pretext that it was being used for business.
The Forum pulled up the insurance company for evading the payment under the pretext that the customer was using it for his real estate business. The Forum also awarded a compensation of Rs 5,000 to the complainant, Kanikicharla Prakash Babu of Mangamur Donka in Ongole, for suffering mental agony and inconvenience, besides Rs 2,000 towards costs of litigation to the complainant, while delivering the order recently.
In 2012, Prakash Babu had approached the Forum alleging that the insurance firm, Reliance General Insurance Co.Ltd, rejected his claim for Rs 1,76,369 towards repair charges to his car involved in an accident near Inkollu in Prakasam district on May 13, 2012.
He said that he gave his car for repair to the Tata showroom in Nellore as per the directions of the insurance company. He has also carried out some repairs outside the showroom and submitted claim forms to Reliance General Insurance.
However, the company sent a letter on August 9, 2012, seeking clarification on the vehicle covering 63,220 km in 13 months, on an average of 160 kms per day. To the surprise of Prakash, the company sought supporting documents for usage of the car.
They did not respond when Prakash said he purchased the car for his own use and never maintained any record regarding the travel. He issued a legal notice on August 21, 2012.
Though he did not receive any acknowledgement, the postal department confirmed that it was delivered.
He knocked the doors of the consumer forum in October, 2012, after the insurance firm ignored his letters and notices.
Incidentally, the insurance company denied all the averments that were mentioned in the complaint.
They alleged that there was no policy coverage to the accident vehicle on the date of the accident and the complainant had not submitted the required documents or copy of the policy to settle the claim.
The insurance firm also alleged that the complainant had not issued any legal notice along with other documents at any point of time.
The firm alleged that there was no proof that the repairs were carried out in an authorised showroom and the bills were not genuine.
The complainant had not only submitted the required documents i.e., F.I.R., but also the motor vehicle inspector report and final report of police investigation, along with a copy of the policy to the insurance firm.
The Forum heard the arguments of both sides and asked the insurance firm to pay the money. to After hearing the arguments of both sides, the president of the Consumer Forum, S.V. Chalapati and member A. Prabhakar Gupta directed the insurance firm to pay the amount.
