The South Delhi District Consumer Disputes Redressal Commission has held National Insurance Company Limited guilty of deficiency in service for rejecting a motor insurance claim involving a stolen car. The commission found that the vehicle’s owner had taken reasonable precautions after it broke down and was therefore entitled to receive the insured amount.

The complainant’s car had reportedly developed a mechanical problem, following which he moved it to the roadside, locked it and covered it with tree branches. The vehicle was subsequently stolen on December 7, 2016. The owner approached the insurance company for compensation, but the insurer repudiated his theft claim, leading him to seek relief from the consumer commission.

The commission examined whether leaving the disabled vehicle beside the road amounted to negligence by the owner. It concluded that he had acted prudently under the circumstances by securing the car and moving it away from the main carriageway. Covering the vehicle with branches was also treated as an effort to protect it while it remained unattended.

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A bench comprising commission president Monika Aggarwal Srivastava and members Rajendra Dhar and Ritu Garodia ruled that the insurer had wrongfully rejected the claim. The bench held that the company’s decision constituted a deficiency in service because the complainant’s actions did not justify denying him the contractual benefit available under the insurance policy.

In its order dated July 24, the commission directed National Insurance Company to pay the insured sum of ₹2.06 lakh. It also awarded the complainant ₹20,000 as compensation and litigation costs, bringing the specified payout to ₹2.26 lakh. The compensation recognised the inconvenience and expenses caused by the insurer’s refusal to settle the claim.

The commission further ordered the insurer to pay interest at seven per cent annually on the ₹2.06 lakh insured amount, calculated from the date of the theft until payment is made. The ruling reinforces that an insurance claim cannot be rejected merely because a broken-down vehicle was temporarily left by the roadside when the owner had taken reasonable steps to secure it.

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