The apex consumer commission has asked the National Insurance Company Ltd to pay accident claim of Rs 1.14 lakh to one of its customers, saying though there was a delay in informing the firm, it was "not fatal" in this case.
The National Consumer Disputes Redressal Commission (NCDRC) passed the order in a case in which the property of Southern Railways was damaged by Kerala-based contractor Bobby Joseph's vehicle, which was insured with the firm.
The Railways had assessed the loss and realised it from Joseph. Later, he approached the insurance company to claim the amount but the firm refused it on ground that he was late in informing about the accident and failed to meet the terms of policy.
Thereafter, Joseph approached a district consumer forum which directed the firm to pay Rs 1,14,000 to him.
However, the firm appealed before Kerala State Consumer Commission which also upheld the forum's order. The firm then filed an appeal before the NCDRC.
"Both the fora have given concurrent findings in favour of the complainant (Joseph). It must be borne in mind that there is a delay. The complainant should have informed insurance company immediately. However, delay in this case is not fatal though complainant has committed a mistake," NCDRC bench, presided by Justice J M Malik, said.
While terming the plea as "without merit", NCDRC bench, also comprising its member Dr S M Kantikar, said, "In this case, the amount of loss was assessed by Railway Department. Railway Department is a government department. The chances of collusion between the Railway authorities and the complainant are almost nil."
The bench imposed a cost of Rs 10,000 on the firm. It said no allegation was made against the Railway authorities and there was no possibility of any ulterior motive.
Joseph, who had taken a contract from Southern Railways, told the commission that during the course of work, his tipper lorry hit a Railway mast and damaged it in January 2005.
The Divisional Railway Manager (works), Southern Railways calculated the loss including materials and cost of labour at Rs 1,06,000 and realised it from Joseph.
The insurance company had contended before apex commission that Joseph was not a consumer in this case. Also, it said that there was huge delay by Joesph in informing it about the incident.
