The Delhi district consumer redressal forum has directed New India Assurance Company to pay Rs 75,000 to Sumit Kumar for deficiency in service. This includes Rs 55,000 as cost of the CNG kit, Rs 15,000 as compensation for harassment and Rs 5,000 as litigation cost.
Sumit has insured both his Santro car and CNG kit fitted in it with New India Assurance from June 2008 to June 2009. Sumit had paid premium of Rs 10,949 for the value of the car and Rs 2,544 for the CNG kit. His car was stolen in June 2008. Company paid the insured amount of the car but it rejected his claim for the loss of CNG kit.
Company said that the registration of certificate did not mention that car was fitted with a CNG kit hence, his claim was not payable.
But forum observed that company can not deny his claim of CNG kit as it has separately insured the CNG kit and it also received premium for it.
Forum also observed that company’s investigator also verified that CNG was installed in the car and as per the policy it was insured for Rs 55,100.