Observing that rejection of a claim on a "hyper-technical" ground amounts to deficiency in service, the National Consumer Disputes Redressal Commission (NCDRC) dismissed IFFCO-TOKIO's appeal against the Maharashtra State Consumer Commission's order, which had directed it to pay Rs 24,15,441 to the firm, Prime Health Care Product.
"We do not find any merit in this appeal. We also agree with the state commission that repudiation of claim on a very flimsy and hyper-technical ground amounts to deficiency in service. The appeal is therefore, dismissed and the order of the Maharashtra State Consumer Disputes Redressal Commission is confirmed," the bench presided by Justice V B Gupta said.
The state commission had held that the insurance firm had rejected the claim on flimsy grounds, despite insurance surveyor pegging the firm's loss at Rs 24,15,441.
IFFCO-TOKIO had rejected the claim of the firm on the ground that the loss had occurred solely due to water seeping through the terrace slab and through unprotected openings on the second floor and such damage could not be construed as damage by flood, for which the firm was insured.
The state commission had rejected the stand taken by the insurance company as "hyper-technical".
Agreeing with the state commission's observation, NCDRC also increased the costs payable to the firm, from Rs 20,000 to Rs 50,000.
"Taking into account harassment undergone by complainant we deem it just and proper to raise the cost of proceedings to Rs 50,000 from Rs 20,000," NCDRC said. MORE PTI HMP RAX