English
Arabic
Chinese (Simplified)
Russian
Spanish
Urdu
Kupwara : The District Consumer Disputes Redressal Commission (DCDRC) Kupwara has directed Bajaj Allianz General Insurance Company Ltd. to compensate a local vehicle owner after finding the insurer guilty of deficiency in service and unfair trade practice for failing to settle a valid insurance claim.
The case was filed in 2017 by Irfan Ahmad Dar, a resident of Sirajpora, Handwara, who owned a TATA Sumo (JK09-5701) insured with Bajaj Allianz under a policy valid from April 18, 2015, to April 17, 2016. On March 19, 2016, the vehicle met with an accident at Sirajpora while plying from Vilgam to Handwara, resulting in heavy damage. An FIR (No. 23/16) was lodged, and Dar promptly intimated the insurer and submitted all required documents, including the FIR, inspection report, and repair bills.
Despite deputing a surveyor to assess the loss, the company failed to process the claim and instead raised repeated queries about route permits and ownership transfer, which the complainant insisted had been addressed. Dar argued that the refusal to settle the claim caused severe financial and mental distress, as the vehicle was his family’s only source of income and he struggled to repay a bank loan linked to it.
The insurance company defended itself by contending that the permit was not valid at the time of the accident. However, after examining the evidence and testimonies of both parties, the commission concluded that the insurance policy was valid when the accident occurred and the insurer had failed to prove any deliberate breach of terms by the complainant.
In its judgment delivered on July 31, 2025, the commission, headed by President Peerzada Qousar Hussain and Member Nyla Yaseen, ordered Bajaj Allianz to pay a total compensation of ₹8 lakh to the complainant, covering deficiency in service, mental agony, and losses caused by poor service.
The verdict underscores that insurance companies are duty-bound to settle genuine claims within the stipulated time, and failure to do so not only violates consumer rights but also amounts to unfair trade practice under the Consumer Protection Act, 2019.
The compensation amount was later handed over to the complainant through cheques issued by the company.
