Delayed Intimation To Insurer Does Not Warrant Total Rejection Of Claims: Delhi State Commission Holds New India Assurance Liable For Deficiency In Service

The Delhi State Commission ruled that a delayed intimation to an insurer does not automatically warrant the total rejection of an insurance claim. In a case where an insured party had not informed the insurance company within the prescribed time, the Commission held that this delay should not result in an outright rejection. The ruling underscores that insurers must consider the merits of each claim, even in cases where there is a delay in reporting, ensuring that claimants are not unduly penalized for minor delays in communication.