An owner's claim for a damaged vehicle can be rejected by an insurance company if it is over-loaded with passengers at the time of accident, National Consumer Disputes Redressal Commission (NCDRC) has said.
The Commission bench, comprising Members Anupam Dasgupta and Vineeta Rai, held that over-loading of passengers in the commercial vehicle is violative of the terms and conditions set by the insurance company which had rightly repudiated the claim of the policy-holder.
"There is strong and convincing evidence produced by the insurance company of serious breach of the terms and conditions of the policy by the respondent, leading to justifiable repudiation of his insurance claim by the company," the Commission said.
It passed the order on a petition of Oriental Insurance Company challenging the Karnataka State Commission's direction to pay 75 per cent of the losses of the complainant by treating the claim as "non-standard".
The insurance company contended the claim cannot be treated as "non-standard" as this is the provision in consumer cases where public sector units (PSUs) are involved and which can be used in cases where the parties want to avoid litigation of minor nature or technical nature.
It rejected the contention of the complainant, B A Nagesh, that the insurance company is liable for deficiency in service in repudiating the claim of the policy-holder.
Nagesh is the owner of a mini van which had met with an accident in 2002. The insurance company rejected the claim for violating its condition by over-loading the vehicle.
He had approached the District Forum which dismissed his petition. But the State Commission gave him relief by directing the insurance company to pay 75 per cent of the losses which his vehicle suffered in the accident.