A consumer court here has directed an insurance company to pay Rs2.7 lakh claim to a man who had to spend excess money for repairing his vehicle damaged in an accident.
It also imposed a cost of Rs 10,000 on the United India Insurance Corporation Limited towards cost of litigation to the complainant.
"We direct insurance company to release the entire amount of the insured's declared value i.e. Rs 2.7 lakh to the complainant," the West Delhi District Consumer Forum said.
The Forum noted that the deduction towards wreck of the car by the insurance company is not justified as the complainant had repaired the vehicle by incurring additional expenses.
"Hence, the deduction towards wreck to the tune of Rs50,000 (by the insurance company) is not justified when the complainant had to bear additional expenses for repairs of the car and also has under gone so much of harassment," it said.
The Forum noted that the complainant had paid Rs 80,000 more than the the insured declared value of the vehicle while repairing.
The Hyundai Accent car met with an accident in Haryana last year.
Complainant Ankan Sharma moved the Forum alleging unfair trade practice on the part of the insurance company and Hans Hyundai Private Limited, where the vehicle was repaired, by entering into collusion and asking him to make advance payment of Rs 1.05 lakh for carrying out the repair work.
