DCRDC Holds Go Digit General Insurance Liable For Failure To Settle Accidental Claim

DCRDC Holds Go Digit General Insurance Liable For Failure To Settle Accidental Claim

Orders it to compensate the vehicle owner adequately

The Chandigarh bench of the District Consumer Disputes Redressal Commission (DCRDC) has held Go Digit General Insurance Ltd liable of deficiency in services for failure to settle a genuine claim within its commitment of 30 days.

The bench comprising Pawanjit Singh (President) and Surjeet Kaur (Member) ordered the company to pay the claim of Rs.13,36,080 to the complainant, Rs.20,000 compensation and Rs.10,000 as cost for litigation.

An individual, Mukesh Kumara (complainant) owned a BMW X3. It was insured with Go Digit General Insurance Ltd from 19 August 2019 to 19 August 2020.

On 09 December 2019, the complainant's friend, Parav Sharma, borrowed the car. While driving it, he lost control and collided with a roadside tree, causing damage to the vehicle. The injured driver was taken to the general hospital.

Meanwhile, the repair shop, Sai Moto Corp, informed the insurance company about the claim, which led to the appointment of a surveyor and investigator. However, despite the insurance company's settlement claim commitment within 30 days, it failed to meet the deadline.

The owner of the vehicle, Kumara raised several grievances via email. Instead of providing him with a satisfactory response, the insurance company sent a note raising queries about the documents submitted by him.

Aggrieved by the situation, the complainant approached the DCRDC and filed a consumer complaint against Go Digit.

The insurance company argued that a previous claim involving the complainant showed a similar pattern. It suspected wrongful claims, as the previous owner confirmed selling the vehicle for Rs.5 lakh, while the complainant claimed an IDV of Rs.13,80,000. It argued that despite requests, the complainant did not provide proof of purchase, payment transactions, or bank statements. It claimed that the material facts were misrepresented by the complainant while taking the insurance policy.

The Commission observed that the insurance company rejected the claim based on the complainant's alleged non-cooperation and failure to respond to communications. However, the complainant had submitted responses to all queries raised by Go Digit.

The DCRDC noted that in an affidavit submitted by the complainant, the licensed insurance claim surveyor and loss assessor/investigator assessed the damage to the vehicle at Rs.1,291,329.90. The amount exceeded 75 percent of the Insured Declared Value (IDV) of Rs.13,80,000. Since the amount for repairs surpassed the prescribed limit, the Commission treated it as the vehicle’s total loss. It held the insurance company liable for deficiency in services.

Thus, the District Commission ruled that the complainant was entitled to receive the IDV of Rs.13,80,000, excluding the salvage value of Rs.43,919.90.

It directed Go Digit to pay Rs.13,36,080 to the complainant, along with interest at a rate of 9 percent per annum from the date of filing the complaint. The insurance company was also ordered to pay Rs.20,000 for the mental agony and harassment caused to him, along with Rs.10,000 as litigation cost.