National Insurance told to pay up car repair charges


Kaushik Upadhyaya owned a Maruti van for which he obtained a policy from National Insurance Co. Ltd. The car met with a serious accident in 2009 and required extensive repair. National Insurance made an ad hoc interim payment of Rs. 50,000. It asked Kaushik to pay the repair bill and lodge a claim.

Kaushik waited for a long time but the insurance company did not pay up. Aggrieved, he asked Consumer Education and Research Society (CERS), Ahmedabad to intervene. The insurer offered to pay Rs. 58,700 as full and final settlement. Since Kaushik was not willing to accept this, a complaint was filed in the District Forum. As per the surveyor’s report in court, Rs. 1,07,304 was to be paid. Deducting the Rs. 50,000 already paid, the remaining claim amount came to Rs. 57,304.


The Forum told the insurance company to pay Rs. 57,304 with 9% interest. The company was also asked to give the complainant Rs. 2,000 towards compensation for mental agony and Rs. 1,000 for litigation costs. With the interest, the amount was considerably higher than the insurer’s earlier offer of Rs. 58,700.

Point of law

Deficiency in service: Insurer cannot decline payment of legitimate claim amount in the event of a car accident.

[Source: The order of the Consumer Disputes Redressal Forum, Ahmedabad dated 30 November 2016 on Complaint No.  288/2013]

Malaysian Airlines to pay for damage of goods 


Dentply India Pvt. Ltd. engaged the services of Malaysian Airlines to airlift consignments from Los Angeles to New Delhi in 1999. Not only was there delay in delivery, the first consignment had been opened and tampered with. Also, only part of the consignment had arrived. The company filed a case in the Delhi State Commission.

The State Commission awarded the company Rs. 75,000 as compensation towards damages and delay and Rs. 1 lakh as compensation for mental agony. The airline appealed to the National Commission. It contended that it had to repack part of the consignment as there was a change of aircraft involved. Also, the complainant had not provided adequate evidence to prove how much damage was caused.


The National Commission upheld the State Commission’s order but reduced the amount of compensation. It directed Malaysian Airlines to pay compensation of Rs. 50,000 to Dentply India for delivering goods in a damaged condition and for delay in delivery. In addition, Rs. 50,000 was to be paid as compensation for mental agony.

Point of law

Deficiency in service: If cargo is damaged or delayed causing monetary loss to a company, an airline has to pay compensation.

[Source: The order of the National Consumer Disputes Redressal Commission, New Delhi dated 5 January  2017 on First Appeal 883 of 2013]
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