Daijiworld Media Network – Mangaluru
Mangaluru, June 28: In a significant ruling, the Dakshina Kannada District Consumer Disputes Redressal Commission has directed a private insurance company to compensate a policyholder for delaying settlement of a vehicle repair claim following an accident.
Future Generali Insurance Company Limited has been ordered to pay Rs 2.28 lac with interest at 6% per annum from March 17, 2025 — the date the complaint was filed — until realisation of the amount. The commission also awarded an additional Rs 25,000 to the complainant, Ramesh alias Ramesh Kulal of Mani in Bantwal taluk, as compensation for mental agony, inconvenience, and deficiency in service. A further Rs 5,000 was granted towards the cost of litigation.
Kulal, the owner of a light commercial vehicle used for transporting goods, had insured it for Rs 2.28 lac. The insurance cover was valid from February 24, 2024 to February 23, 2025.
On May 11, 2024, while returning to Mangaluru from Sullia during heavy rain, the vehicle met with an accident near Anegundi. The driver reportedly lost control, and the vehicle collided with a lorry approaching from the opposite direction before overturning. The authorised service centre in Mangaluru assessed the repair cost at Rs 4.10 lac — far exceeding the insured sum.
In his complaint, Kulal alleged that despite submitting all required documents promptly, the insurance company deliberately delayed processing and settling the claim.
The commission issued notice to the insurance firm, but it failed to appear or respond. As a result, the matter proceeded ex parte. Citing a 2018 judgment by the National Consumer Disputes Redressal Commission, the district forum stated: “In the absence of version and affidavit from their (insurance firm) side, complaint allegation of the complainant (Kulal) is to be held as a proved fact.”
The bench, comprising president (in-charge) Somashekarappa K Handigol and member H G Sharadamma, delivered its order on June 10. It concluded there was a clear deficiency in service on the part of Future Generali Insurance Company.
The commission directed the firm to make the payment within 45 days from the pronouncement of the order. If the company fails to comply, the awarded sums will attract interest at 8% per annum from the date of default. Furthermore, Mr Kulal has the right to initiate civil or criminal proceedings under Sections 71 and 72 of the Consumer Protection Act if the insurer does not fulfil the order.