The New India Insurance Company rebuked for tossing out claim for stolen mobile

BENGLAURU: An insurance firm has been ordered to pay compensation to an Anandnagar resident, whose claim for a stolen mobile was rejected on the grounds that an FIR was not registered within 48 hours of the theft.

The Bangalore Urban 2nd Additional District Consumer Disputes Redressal Forum said there was no such rule for FIR submission. It ruled The New India Insurance Company had misled the 48-year-old policyholder, S Sivaraman, by citing non-existent conditions and ordered it to settle the claim and compensate him. “Show us the rule mandating the submission of FIR within 48 hours of the theft,” it said.

The company is liable to pay Sivaraman Rs 13,120 with 12% interest and Rs 5,000 for mental agony and legal expenses. The order was issued on November 8 and the insurer has been given 30 days to fulfil it. Sivaraman’s mobile, a new Samsung model, was snatched on Ganganagar 5th Main Road on March 4, 2017. He was shopping with his children at the time, and he could not leave them and chase the crook.

He reported the crime at the RT Nagar police station. On the station house officer’s advice, he filed an online complaint with the e-lost report wing of Bengaluru police and received an acknowledgement.

On March 5, 2017, Sivaraman filed a claim for his six-month-old phone, which he had bought for Rs 13,120. He shared the e-report and other supporting documents, but the insurance firm demanded an FIR copy and gave him 30 days to submit it. Sivaraman got police to register an FIR on March 24, 2017, and submitted a copy for his insurance claim the following day. But the company rejected the claim, saying he had failed to get the FIR lodged within 48 hours of the theft. Sivaraman argued that company officials had given him 30 days, but in vain. He approached the consumer forum on February 23, 2018, alleging deficiency of services.

The company’s lawyer contended that the case was not maintainable and Sivaraman had suppressed facts. Judges heard the case for 21 months and read out insurance rules to reject the company’s argument.

“In the event of theft or burglary, beneficiary to report the incident to police within 48 hours from the time of such incident. If the beneficiary is travelling, the theft/robbery must be notified to local police authority in writing as soon as practically possible. The report must be duly acknowledged by the police authority concerned,” the rules state.

The forum said no requirement for an FIR within 48 hours had been specified in the rules. It noted that Sivaraman had fulfilled conditions by registering an online complaint, and therefore, the company’s decision to turn down his rightful claim was illegal.

Source: The Times of India