HDFC ERGO Insurance Company Ltd ordered to pay for stolen car

Ahmedabad: A consumer court ordered an insurance company to pay a claim to a person for his stolen car.

The insurance company – HDFC ERGO Insurance Company Ltd – was denying the claim to Bharuch’s Rameshbhai Gohil on the ground that he had lost his sedan because of his negligent behaviour. His car, valued at Rs 12.04 lakh, was taken away by a potential buyer right in front of him while Gohil was explaining the car’s features to the potential buyer.

Gohil had posted an advertisement online to sell his sedan in 2013. One Vikas Desai visited him on October 17, 2013 and expressed interest in buying the vehicle. Desai called Gohil four days later on October 21, 2013 and asked him to show him the car’s features. While Gohil was busy showing Desai the features, Desai comfortably got behind the wheel, started the vehicle and drove away. He was never to be seen again.

Four days later, Gohil lodged an FIR and later informed the insurer because he had paid the premium for the year 2013-14. The insurance company first tried to settle the claim by offering him Rs 8.3 lakh, but later withdrew, leading Gohil to approach the Bharuch District Consumer Dispute Redressal Forum.

The insurance company opposed the complaint and argued that Gohil had lost his vehicle due to his negligence only. He was late in informing police as well as in intimating the insurance company.

The consumer court concluded that the insurer should pay 70% of the insured value to Gohil, which came to around Rs 8.43 lakh. The court also ordered the insurer to pay Rs 5,000 extra towards compensation for harassment and legal expenditure.

Source: The Times of India