NEW DELHI: Insurance claims cannot be rejected if the reason for delay in filing it is satisfactorily explained, the Supreme Court has said while granting relief to a man who was denied the claim for his stolen vehicle.
A bench of Justices R K Agrawal and S Abdul Nazeer said that rejection of the claims on purely technical grounds in a mechanical manner will result in the “loss of confidence of policy-holders in insurance industry”.
The observations came as the bench allowed the appeal of a man against the ruling of the National Consumer Disputes Redressal Commission (NCDRC) that insurance firms could deny the claim benefit for delay in filing it.
The Apex Court directed Reliance General Insurance Company to pay Rs 8.35 lakh to the Hisar-based customer whose insured truck was stolen but his claim was rejected on the grounds of delay in filing it.
“If the reason for delay in making a claim is satisfactorily explained, such a claim cannot be rejected on the ground of delay. It is also necessary to state here that it would not be fair and reasonable to reject genuine claims which had already been verified and found to be correct by the Investigator,” the bench said. (AGENCIES)
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