Background:
Manjeet Singh purchased a second-hand truck through a hire purchase agreement and got it insured with the National Insurance Company. During a trip, the truck was stolen after a passenger attacked Manjeet Singh. Despite following all the necessary procedures—informing the authorities and the insurance company—the insurance claim was rejected. The insurance company argued that Singh had violated policy terms by picking up an unauthorized passenger, thus nullifying his claim.
Legal Journey:
Manjeet Singh initially approached the consumer forum, which ruled in favor of the insurance company. Determined to seek justice, he appealed to the State Consumer Disputes Redressal Commission, which upheld the lower court’s ruling. Undeterred, Singh took the matter to the National Consumer Disputes Redressal Commission (NCDRC), which also ruled against him. Finally, he approached the Supreme Court of India.
Judgment:
The Supreme Court ruled in favor of Manjeet Singh, stating that minor breaches in policy terms should not prevent the insured from receiving their rightful claim. The Court directed the insurance company to pay Singh 75% of the insured amount with 9% interest from the date of the claim, along with a compensation of ₹1 lakh for the mental agony and harassment he endured.
Impact:
This landmark ruling emphasized the importance of fair assessment in insurance claims and established that minor policy breaches should not be used as excuses to deny compensation. It serves as a precedent for future cases, protecting consumers from unjust insurance practices.
Takeaway:
Always document your interactions with insurance companies and don’t hesitate to pursue justice, even if it means appealing to the highest court. Minor mistakes should not rob you of your rightful claims.
Last modified: September 30, 2024
