Insurance Company to Pay Rs 25 Lakh as Compensation

Jagdalpur: The District Consumer Commission has ordered Cholamandalam MS General Insurance Company Limited to pay Rs 25 lakh as compensation and a fine of Rs 10,000 to the complainant, Sheshnarayan Dwivedi.

According to the order, Dwivedi, a resident of Jagdalpur, had insured his vehicle with Cholamandalam MS General Insurance Company Limited. Unfortunately, his vehicle met with an accident and was damaged. Dwivedi informed the insurance company about the incident, and the company instructed him to get the vehicle repaired at a garage after conducting a spot survey. However, the insurance company rejected Dwivedi's claim, stating that he had not provided the necessary documents.

Aggrieved by the decision, Dwivedi filed a complaint with the District Consumer Commission, which heard the case and ruled in his favor. The commission observed that Dwivedi had provided the necessary documents within the stipulated time frame, and the insurance company was liable to settle his claim.

The commission further stated that the insurance company had failed to fulfill its obligations and had committed a deficiency in service and unfair trade practice. Therefore, the company was ordered to pay Rs 25 lakh as compensation and a fine of Rs 10,000.

The order was passed by a joint bench of the commission, comprising Chairperson Sujata Jaswal, and members Alok Kumar Dubey and Seema Golcha.