Burglary insurance policy applicable to modern-day theft: Consumer Forum orders United India Insurance to pay Rs. 3.47 lacs

BENGALURU: A consumer forum in the city ruled that an insurance company cannot reject a claim under ‘Burglary Declaration Policy’ for a theft on the grounds that it does not fall under the definition of burglary.Taking note of the change in the pattern of crimes, Bangalore Urban District Consumer Disputes Redressal Forum directed the United India Insurance Company to pay Rs 3.47 lakh to Mobile Next Tele Services, where the loss of mobile handsets had taken place. 

Allowing in part a complaint filed by the firm, the forum comprising president S L Patil and member P K Shantha said in its judgment dated December 19 that the insurance company conveniently overlooked the ‘ingenious ways’ of present day burglars where locks are broken without apparent violence and force. Quoting a survey report of the insurance company, it said the claimant’s estimated loss is Rs 8.08 lakh and the net adjusted loss is Rs 3.47 lakh. “Therefore, the insurance company is directed to pay the amount along with a litigation cost of Rs 5,000”, the forum said in the order.  

On January 18, 2007, miscreants brok into the shop, located in Jayamahal Extension and took away mobile handsets. The jurisdictional police registered a case under Section 457 and 380 of the IPC. However, police failed to nab the offenders and a ‘B’ report was filed. But the commission of the offence was established in the investigation. 

Subsequently, the complainant approached the insurance company. But it rejected the claim saying it was a theft and not burglary as defined in the terms of the policy. It had said that forcible entry into and out of the premises had not occurred. 

Source; The New Indian Express