Shimla District Commission Holds Reliance General Insurance Co. Liable For Wrongful Repudiation Of Genuine Claim

The District Consumer Disputes Redressal Commission, Shimla (Himachal Pradesh), comprising Dr. Baldev Singh (President) and Janam Devi (Member), held Reliance General Insurance Company Limited accountable for deficient service in rejecting an insurance claim. \r

The case involved Mr. Ramesh Chand, who owned a Maruti Car insured with Reliance General Insurance. Following Mr. Chand's death in a 2014 accident, the insurance policy remained in the previous owner's name due to the lack of transfer. The Commission ruled that despite the policy discrepancy, Mr. Chand possessed insurable interest as he held a valid driving license.\r

It directed the insurer to indemnify the complainants, Mr. Chand's family, with Rs. 1,00,000 under the personal accident cover, plus 9% interest. Additionally, Rs. 10,000 each was awarded for mental agony and litigation costs.