Shubhani Mittal | Vivekananda Global University | 27th January 2020
GURSHINDER SINGH vs. SHRIRAM GENERAL INSURANCE CO.LTD CIVIL APPEAL No.653 OF 2020
Facts-
In this case, the appellant had got his tractor insured with the respondent, after few years his tractor got stolen and FIR was lodged. The claim got rejected on the ground that intimation was given after 52 days.
The District Consumer Disputes Redressal Forum, directed the respondents to pay a sum of Rs.4,70,000/ being the declared insured value of the vehicle to the complainant within one month from the date of receipt of copy of the order, failing which, the respondents were made liable to pay interest at the rate of 12% per annum from the date of order till payment.
Being aggrieved by the dismissal of the appeal by the State Commission and the National Commission, the respondent approached Supreme Court.
The court referred the judgement of Om Prakash vs. Reliance General Insurance in which the theft of the vehicle was reported to the police on the day after the theft occurred, the intimation was sent to the insurance company much later. The Court took the view that delay in informing the insurance company would not debar the insured to get the insurance claim and thus held that if the claimant is denied the claim merely on the ground that there is some delay in intimating the insurance company about the occurrence of the theft, it would be taking a hyper technical view. It would not be fair and reasonable to reject genuine claims which had already been verified and found to be correct by the investigator.
Judgement –
The apex court observed that, when an insured has lodged the FIR immediately after the theft of a vehicle occurred and when the police after investigation have lodged a final report after the vehicle was not traced and when the surveyors/investigators appointed by the insurance company have found the claim of the theft to be genuine, then mere delay in intimating the insurance company about the occurrence of the theft cannot be a ground to deny the claim of the insured.
The Supreme Court held that mere delay in intimating the insurance company about the occurrence of the theft cannot be a ground to deny the claim of the insured.
The court ordered that, the amount, i.e., 75% of the claim amount deposited by the respondents, was permitted to be withdrawn by the appellant along with interest accrued. The remainder will be paid by the respondents within a period of six weeks from the date of this judgement along with interest at the rate of 12% per annum on the entire amount of Rs.4,70,000/ from the date of the order of the District Forum till its realisation
Leave a Reply