Parashuram Madar, a resident of Kottur in Dharwad district, has been awarded compensation by the District Consumer Commission after his legitimate insurance claim for vehicle damage was wrongfully rejected. Parashuram owned a good vehicle and insured it by paying Rs 28,482 to Reliance General Insurance. On August 9, 2023, the vehicle met with a serious accident near Somapur while on the way from Kottur to Bijapur.
The policy was valid at the time of the accident. Parashuram who placed the vehicle for repair at Bharat Garage in Hubballi informed the insurance company representatives and filed a claim on the same day, estimating the repair costs at Rs 3,14,250. Despite assurances that his claim would be processed, the insurance company abruptly rejected it on October 7, 2023, without providing a valid reason.
Feeling disappointed, Parashuram approached the District Consumer Commission on December 7, accusing the insurance company. The forum presided over by Eshappa K. Bhute, along with members Vishalakshi A Bolashetti and Prabhu C Hiremath, ruled in Parashuram’s favor.
The forum stated that the insurance company was legally obligated to cover the repair costs since the policy was in force at the time of the accident. The forum ordered Reliance General Insurance to pay Parashuram Rs 3,00,000 as compensation, with an additional 8 percent interest from the date of claim rejection (October 7, 2023) until the full amount is paid. Additionally, the company has been directed to pay .
