Case Comment: HDFC ERGO General Insurance Co v Bhagchand Saini

The National Consumer Disputes Redressal Commission has ruled that any delay in the notification of theft to the Police or the insurer in motor vehicle policies is fatal to the claim in its judgment of 4 December 2014.

Facts:

The insured informed the insurer of theft of his vehicle after a delay of 3 months. The information to police was after a delay of 2 days. The insurer repudiated the claim on the ground that the enormous delay in notification was in violation of policy conditions.

The insured filed a complaint before the District Forum which allowed his claim on a non-standard basis by applying the principle laid down by the Supreme Court in Amalendu Sahoo v OIC AIR 2010 SC 2090, where the Supreme Court had directed payment of 75% of the claim in case of an accident of a vehicle which was registered for private use but was being used for commercial purposes. The State Commission of Rajasthan upheld the order of the District Forum and the Insurer preferred a