Supreme Court has said that insurance claims cannot be rejected if the reason for delay in filing it is satisfactorily explained.<br/><br/>A bench of Justices RK Agrawal and S Abdul Nazeer said that rejection of the claims on purely technical grounds in a mechanical manner will result in the loss of confidence of policy-holders in insurance industry.<br/><br/>The observations came as the bench allowed the appeal of a man against the ruling of the National Consumer Disputes Redressal Commission (NCDRC) that insurance firms could deny the claim benefit for delay in filing it. <br/><br/>The apex court directed Reliance General Insurance Company to pay 8.35 lakh rupees to the Hisar-based customer whose insured truck was stolen but his claim was rejected on the grounds of delay in filing it. <br/><br/>Supreme Court said that the Consumer Protection Act is aimed at providing better protection of the interest of consumers. <br/><br/>The court also observed that a person who has lost his vehicle may not straightaway go to the insurance company to claim compensation and will first make efforts to trace the vehicle.<br/><br/>The insurance firm had denied the insurance claims saying claimant has violated a policy condition that made it mandatory to inform the firm immediately after any accidental loss or damage to the vehicle.
News On AIR | October 9, 2017 6:18 AM
Insurance claims cannot be rejected if reason for delay in filing it is satisfactorily explained: SC