Thane District consumer disputes redressal forum, has held that an insurance policy comes into effect as soon as the first premium/installment is made.
This decision has come on the plea of Darshan G Deore, whose vehicle met an accident within hours of taking vehicle insurance policy and hence, his claim was rejected by the Insurance Company.
Deore has bought a vehicle policy from TATA AIG General Insurance Company on 25 October 2008 at 20.34 hours, and he paid first premium on the spot. But his car met an accident immediately thereafter.
Insurance company rejected his claim, saying that policy was effective from 26 October 2008. But rejecting insurance company’s argument forum directed it to pay claim amount of Rs 335,280 to Deore, after deduction of depreciation amount. Forum also directed TATA AIG to pay Rs 10,000 to Deore for mental suffering and Rs 1,450 as litigation cost. Forum ruled that insurance policy becomes effective from the time the payment is made.
Posted on July 12, 2012 by Akanksha
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