CHENNAI: A consumer forum in Chennai has directed an insurance company to settle claims by one of its customers for his van gutted by fire in 2009. The insurance company had earlier rejected the insurance claims on grounds that the customer had installed CNG/LPG kit in the vehicle without informing the company.
However, the District Consumer Disputes Redressal Forum, Chennai (South), based on the documents submitted by the customer, Srinivasa Raja, said in its recent order that the insurance company has been informed of the changes in the vehicle and hence, it has to settle the claims for `1,67,388 and pay additional compensation of `40,000.
According to the petition filed by Srinivasa Raja, he purchased a Maruti Omni van in 2009 and also insured the car for a sum of `1,87,736 by paying a annual premium of `14,432 to Royal Sundaram Alliance Insurance Company Ltd. On November 4, 2011, the vehicle caught fire due to the leakage of petrol and the issue was informed to the police, fire service and the insurance company. The insurance company rejected the claims submitted by Srinivasa Raja in 2013, following which he filed a petition in the consumer forum.
The forum presided by M Mony, observed that the policy documents issued by the company, make it apparent that the policy also covers the risks involving the CNG/LPG kit.
The forum also dismissed the arguments of the company that the case in the forum was filed after a delay of 3.5 years. The forum ordered the company to pay the amount within six weeks.