Chhattisgarh Consumer Commission Orders Insurance Company To Pay Rs 29 Lakh For Burnt Truck

Raipur: A short circuit occurred suddenly while Surajpur resident Nishank Shukla's truck was descending the Basantpur Ghat in the Balrampur district during the insurance period. Within moments, sparks turned the entire vehicle into flames. The truck was completely burnt, causing losses worth several lakhs.

Insurance company rejected claim, citing “permit expired”

The complainant filed a claim before Oriental Insurance Company, but the company rejected it, stating that the vehicle's national permit authorisation had expired. The complainant then approached the District Consumer Commission, Ambikapur.

District Commission granted partial relief, ordered 75 per cent payment

Based on the surveyor's report, the District Commission granted partial relief and ordered payment of 75 per cent of the vehicle’s damage amounting to Rs 15.81 lakh. However, truck owner Nishank Shukla called it incomplete justice and appealed before the State Consumer Commission.

State Commission said – Insurance company at fault, service deficiency proven

The bench of State Consumer Commission President Justice Gautam Cherediya and Member Pramod Kumar Verma said, "The vehicle’s national permit was valid in Chhattisgarh. The accident also occurred within the state limits, so no separate authorisation was required. The insurance company unjustly rejected the claim on wrong grounds, committing injustice to the consumer."

Strict order by the State Commission

Modifying the district order, the commission directed Oriental Insurance Company to pay the complainant a total of Rs 29,05,500/- (after deducting Rs 1,500). An annual interest of 6 per cent (from November 22, 2024) will apply. If payment is not received within 45 days, the interest rate will increase to 8 per cent. The complainant will also receive Rs 5,000 towards litigation expenses.

Decision sets precedent for consumers

The commission clearly stated, "An insurance company cannot act arbitrarily against a consumer. If a vehicle is completely damaged, full payment of the insured amount is mandatory."

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