Retailer wins 10-year battle against United India Insurance Company

BENGALURU: A 10-year-long court battle was what it took a cellphone retailer to win an insurance claim after one of its outlets was burgled, leading to a loss of over Rs 9 lakh. A city consumer court ordered the insurer - United India Insurance - to pay for the loss suffered and also the chain's litigation expenses.

MobileNXT Teleservices Limited, with its registered office in Cooke Town, ran cellphone outlets in several parts of Bengaluru and insured them for a sum of Rs 1 crore in the event of contingencies under the burglary declaration policy of United India Insurance.

In the early hours of January 18, 2007, burglars broke into one of the firm's cellphone outlets and decamped with handsets worth Rs 7.5 lakh, Rs 48,000 and damaged interiors worth over Rs 1 lakh. The firm's representatives lodged a police complaint and an FIR confirmed the break-in and a probe began.

The cellphone retailer, represented by its CEO Vijay Menon, approached United India Insurance office in Bengaluru on May 5, 2007 with all documents, including police reports to claim the insurance money. With the firm failing to reply for 10 months, the retailer sent a reminder on March 7, 2008. Two months later, on May 9, 2008, over a year after the claim was made, United India responded only to debunk the money claim, stating their in-house surveyor established there was no break-in at the shop.

After numerous attempts to claim the insurance sum failed, representatives of MobileNXT approached Bangalore Urban District Consumer Disputes Redressal Forum on June 27, 2009 with a complaint against the insurer.

Menon, representing MobileNXT, submitted the required documents, but the insurer claimed the case was false and fabricated. The lawyer representing the insurer argued there was no forceful entry and they suspect duplicate keys were used to gain access with the possible connivance of shop staff. He said the insurance surveyor established that there was no break-in and the photographs submitted by the customer as part of the money claim too were forged.

Officials slammed

In a litigation lasting over 10 years, the judges of the consumer forum questioned the insurance firm officials on why it took over a year to respond to the claimant.

The judges slammed the officials for overlooking the fact that ingenious burglaries these days are non-violent and can be executed even without forceful entry. It is clear that the interiors of the shop were damaged and the cellphone display racks cut open and this has been established in the police report, they said.

The insurer denying the customer the insurance money is a clear case of service deficiency, the judges added.

In its December 19, 2019 verdict, the court ruled that the manager of United India Insurance Ltd's divisional office IX on Kasturba Road, Bengaluru pay Rs 3,47,856 to the cellphone retailer, apart from Rs 5,000 towards litigation cost, all within six weeks from the order, failing which the sum would attract an 8% interest till the date of realisation.

Source: The Times of India