Directly Remitting Insurance Claim Amount Without Mutual Consent Is Unfair Trade Practice: NCDRC

The National Consumer Disputes Redressal Commission, led by Mr. Subhash Chandra and Dr. Sadhna Shanker, found New India Assurance guilty of unfair trade practices for unilaterally depositing the insurance claim into the insured's account with arbitrary deductions. \r

Despite the insurer's argument that the surveyor's report should be accepted under section 64 UM of the Insurance Act, the commission emphasized it wasn't sacrosanct. Not providing the surveyor's report to the complainant and deductions lacking justification indicated unfair practices. \r

The commission upheld the State Commission's decision, modifying it to direct the insurer to pay Rs. 27,76,208 with 9% interest and Rs. 50,000 for litigation costs, while setting aside compensation for mental agony.