Supreme court of India has recently made a landmark decision in favor of consumers. The Apex Court announced that Insurance claims cannot be rejected mentioning the delay in filing as the reason.
Going deep into the detailssThe verdict came in favor of Om Prakash from Rajasthan, who filed a case stating that his claim was denied due to late filing. Om Prakash lost his truck on March 23, 2010, and he filed for the insurance claim on March 31st. Reliance General Insurance Co rejected the plea by the customer due to delay in Filing.
He reported the issue to National Consumer Disputes Redressal Commission (NCDRC) 7 years back. When his plea was dismissed at NCDRC, he approached SC. After a long wait, the Supre Court bench of justices R.K. Agrawal and S. Abdul Nazeer has ordered the insurance provider to reimburse Rs8.35 lakh to Om Prakash.
The Court said that Insurance claim cannot be denied because of the substantial delay of 7 days. It also expressed that refusal of the requests on purely technical grounds in a mechanical manner will result in the “loss of confidence of policy-holders in insurance industry.” This decision by the supreme court is appreciated as it will benefit the consumers from strict rules of such companies.
The apex court said that “If the cause for the delay in making a claim is convincingly explained, such a claim cannot be rejected on the ground of delay. It is also necessary to state here that it would not be fair and reasonable to reject factual claims which had already been verified and found to be correct by the Investigator.”
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