Forcing Insured Person To Accept A Claim Less Than The Insured Value Amounts To Unfair Trade Practice: Chandigarh District Commission

The Chandigarh District Consumer Commission held that forcing an insured person to accept a claim settlement below the insured value constitutes unfair trade practice. The insurer’s attempt to undervalue the claim was deemed exploitative and contrary to the policy terms. The commission directed the insurer to pay the rightful claim amount along with compensation for harassment. This judgment reinforces the principle that insurers must honor commitments in good faith and avoid coercive practices that disadvantage policyholders.