Car stolen, FIR delayed, claim rejected: Insurer ordered to pay man Rs 4.6L compensation

Together, the award totals Rs 4.68 lakh. According to the complaint, the man’s car was stolen on December 26, 2019, from Pratap Vihar in Uttar Pradesh's Ghaziabad. He said he went to the nearby police station the same day and submitted a complaint about the theft. However, the police did not convert that complaint into a first information report until December 29, 2019—three days later. The man said that when he subsequently approached the insurance company’s office and explained the incident, an executive declined to accept his complaint and insisted that only an FIR could serve as the primary document proving the theft.

The police were ultimately unable to trace the vehicle. After investigation, they filed a final report before the concerned court. The insurance company then rejected the man’s claim, prompting him to approach the consumer commission, The Indian Express report added. The insurance company argued that the claimant had violated the policy’s terms by not reporting the theft promptly. It said the car was stolen on December 26, online information was given to police only on December 29, and the insurer itself was informed on January 2, 2020—a delay of seven days.

The company maintained that because the complaint to police and the intimation to the insurer were both delayed, there was no deficiency in service on its part and the claim was rightly denied. What the commission said The commission rejected the insurer’s position, holding that the delays were minor and did not warrant a total rejection of the claim. “The law is well settled that mere delay of four days in informing the police and mere delay in informing the insurance company for seven days does not tantamount to rejection of the claim of the man on account of such delay.”

The bench added that even if there was some delay in informing the insurer, the company could not decline the claim “in toto.” It held that such an outright rejection amounted to deficiency on the insurer’s part. The decision reinforces that insurers must assess claims fairly rather than use procedural delays as a blanket reason to deny genuine theft claims. The commission’s view was that a consumer should not be deprived of an otherwise legitimate claim because of a limited delay, particularly where the theft itself was reported and investigated.

The ruling also highlights the practical difficulty faced by vehicle owners as a person may approach the police immediately, but the registration of an FIR can depend on police procedure. In this case, the complainant said he had approached the police station on the day of the theft, even though the FIR was registered later. Relief awardedAmountClaim amountRs 4.31 lakhCompensation for harassment and deficiency in serviceRs 25,000Litigation costsRs 12,500Total awardRs 4.68 lakh The Indian Express report further stated that the commission’s order makes clear that insurance companies are expected to process consumers’ claims properly and cannot ignore their concerns in a way that causes unnecessary inconvenience.

Where consumers can seek help? For insurance-related consumer grievances, individuals can approach the consumer commission in their state or union territory. They may also contact the National Consumer Helpline by calling 1915 for assistance.