Insurance company can’t deny claim if someone gets delay in filing: Supreme Court

This is one of the best announcement done by Supreme Court that people don’t have to suffer anymore with their insurance policy while claiming even if there is a delay. There has been an on-going issue while claiming insurance policy if there is a delay due to any reason.

Supreme Court has also said that this needs to be taken care by all insurance companies otherwise people will lose confidence in this industry.

A bench of Justice R K Agrawal and Justice S Abdul Nazeer set aside the verdicts of various consumer courts, including the National Consumer Disputes Redressal Commission (NCDRC), which had ruled that insurance companies could deny the benefit of cover for the delay in filing the claims.

A recent news that Supreme Court has asked “Reliance General Insurance Company” to pay Rs 8.35 lakh to a Hisar-based customer whose insured truck was stolen but his claim rejected on the grounds of delay in filing it.

Justice Nazeer (who wrote the judgment) said that “It is true that the owner has to intimate the insurer immediately after the theft of the vehicle. However, this condition should not bar settlement of genuine claims, particularly when the delay in intimation or submission of documents is due to unavoidable circumstances. The decision of the insurer to reject the claim has to be based on valid grounds. Rejection of the claims on purely technical grounds in a mechanical manner will result in loss of confidence of policyholders in the insurance industry”.

The court also said that a practical approach has to be taken in these type of cases because people who lose their vehicle may not go to the insurance company straight away rather they want to trace it first themselves.

So basically, facts need to be checked before rejecting the claim and claim should not be rejected just because there is a delay while contacting the insurance company.

Transfer old car insurance to the new car

There are few question that needs to be answered in order to understand new policy of car insurance:

Car Insurance

Question 1. I sold my old car and planning to buy a new car, Can I transfer the existing car’s insurance to the new car?

Yes, such a great news for the day that now we’ll be able to transfer our existing car’s insurance to the new one.  This can be requesting by contacting our insurance company through an application for substitution of vehicle by another vehicle of the same class for the balance period of the policy.

It just that we need to pay difference in premium amount due to variation in rate and value of the new car.

Question 2. I have been out of country for almost 1.5 years and the car insurance policy has lapsed. What should I do to revive it?

You need to contact customer service of insurance company and ask for insurance cover. The customer care executive will help you in getting policy as per your requirement. You will get a new policy as per the terms and conditions applicable at the time of policy issuance.

Question 3. I am migrating from Delhi to Kanpur Do I have to intimate my insurance company for the change in location and address and do I have to take a special insurance for the road transit of the vehicle?

Best way to handle this is, Please contact your insurance company and get all information updated as soon as possible. This will allow your insurer to reach you for renewals on time or at the time of claim assistance. If you are changing the registration number of your car in the near future, you must update your insurer about this.

Question 4. For how many years can I take the Zero Depreciation insurance cover?

The Zero Depreciation cover policy varies from insurer to insurer. You may check with your insurance company about the age of the car in years that it offers the cover for.