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.

How to claim your damage

How to claim your damage if car or property damaged In flood?

How to claim your damage?

During the result of any unexpected incidents, like overflow or flood conditions, there is typically loss of vehicle (Car) body, damaged houses are also frequently viewed after any natural hazard.
In heavy monsoon, vehicles, machines, and houses are damaged along with land properties. In it situation you think, how can I claim my damage through insurance?
You can claim your damage if you have a full machine {Car, vehicle } and house protection (Insurance) cover. Here is a quick guide about claiming.

Motor protection policy

Motor Insurance
Motor Insurance

The insurance company offers coverage for damage done to the Motor (vehicle) insured by them, but there is a list of disasters who covered by the companies.
There is a list, In Cases of natural disasters {calamities}, vehicle damaged is covered by Insurance Company.
1. Earthquake
2. Explosion or lightning
3. Self-ignition.
4. Flood or storm
5. home separating or stealing
6. Accident by external means.
7. Terrorist activity

Mode for claiming the policy

Mode for claiming the policy
Mode for claiming the policy

In the occurrence of natural calamities like as earthquake,
Floods, Heavy rainfall, the insured person should quickly notify the insurance company about the incident and damage. The company investigates the damages and determines the cost of restoration. “In case, you repaired your car after an unexpected accident by yourself and you didn’t inform Insurance company, then your claim rejected by the insurer because the insurance company will not be capable to determine the damage when car is repaired” Each insurance company has to take own time ones you have to inform about your damage, Insurer takes between 7-15 days.
But before depositing a claim, you have to File a FIR which needs to be submitted to the Insurer. But you have to submit the document to prove that the house or vehicle you are claiming this is yours.
Company investigates the damage to assets or vehicle and pays a claim. But you need to be careful and hold all receipts if repaired occurs before notifying the insurance company”

Also Read – Linking Aadhaar Card to LIC policy mandatory