Virudhunagar District Consumer Disputes Redressal Forum has directed the manager of The New India Assurance Company to pay ₹40,000 towards compensation for a two-wheeler that was destroyed in fire and ₹10,000 fine for causing mental agony to the customer by delaying the payment of compensation.
In an order dated December 7, forum president S.J. Chakkravarthi and member M. Muthulakshmi also directed the insurance company to pay ₹10,000 towards the litigation expenses. The petitioner, R. Kannan of Pallapatti, said his two-wheeler went up in flames when he was riding it in May 2022. Along with the vehicle, its original certificates were also destroyed.
After the fire, he alerted Sivakasi East police and Sivakasi fire station. When he submitted the claim form seeking compensation of ₹39.200, the insurance company delayed the payment of insured declared value of ₹40,000 as the petitioner did not submit the fire report issued by the fire station and certificate of cancellation of registration of the destroyed vehicle.
Later, the insurance company got these certificates, but did not make the payment of compensation for one year.
