Delay In Informing Insurer Not Critical If Police Notified Promptly: NCDRC Holds Cholamandalam General Insurance Liable For Deficiency In Service

The National Consumer Disputes Redressal Commission (NCDRC) has held Cholamandalam General Insurance liable for deficiency in service, ruling that a delay in informing the insurer is not critical if the police are notified promptly. This significant decision provides relief to policyholders, emphasizing that immediate notification to law enforcement about an incident (like a vehicle accident) can mitigate the impact of delayed intimation to the insurance company. The NCDRC recognized that the primary objective is to inform authorities, and a slight delay in informing the insurer should not automatically lead to claim rejection, promoting a more consumer-centric approach.