Reliance General Insurance guilty of 'unfair trade practices'; directed to pay around Rs 35,000 to man

Reliance General Insurance Company Ltd has been held guilty of "unfair trade practices" by a consumer forum here which directed it to pay around Rs 35,000 to a man for not giving complete claim amount of an insured car which had met with an accident. The New Delhi Consumer Disputes Redressal Forum, presided by CK Chaturvedi, asked the insurance firm to pay Rs 34,384 to Delhi resident Ravinder Singhal for deducting money while paying bills for the repair of his damaged car.

"It is very transparent that Opposite Party 1 (insurance firm) is solely responsible for deducting the claimed amount without any justification. Thus, it clearly indicates the deficiency/unfair trade practices and breach of contract on the part of the firm who arbitrarily deducted the claim amount without any legal justification for the said deduction," the forum's bench, also comprising its members S R Chaudhary and Ritu Garodia, said.

The forum directed the firm to pay the claim's remaining amount of Rs 24,384 and also awarded Rs 10,000 as harassment and litigation expenses. The workshop had given a bill of Rs 32,134 to Singhal.

Singhal had told the forum that he had taken insurance cover of his car from the firm and during subsistence of the policy, his vehicle met with an accident in August 2010. Thereafter, it was brought to a workshop on the instruction of the firm.

After repair, the workshop gave a bill of Rs 32,134 but the firm paid only Rs 7,750 to Singhal, thereafter, he filed a complaint with the forum against the firm and the workshop. In its reply, while the workshop produced the complete performa invoice given to the complainant for rectification of the car, the firm failed to show why it refused to pay the entire repair bill.