IMPORTANT POINT
Insurance Policy – No auto-renewal or extension of insurance period during Covid-19 period, Insurance Company not liable for payment of insurance claim.

ORDER

Gautam Chourdiya, President.—This appeal, filed under Section 41 of the Consumer Protection Act 2019 (hereinafter called “the Act” for short) is directed against order dated 29.02.2024 passed by District Consumer Disputes Redressal Commission, Korba (hereinafter called “District Commission” for short) in complaint case No.CC/2023/20 whereby the complaint filed by the respondent herein was partly allowed and the opposite party / appellant was directed to pay within one month Rs.15,00,000/- (Rupees Fifteen Lacs) to the complainant/ respondent herein as insurance compensation with compensation towards physical, mental and financial harassment Rs.15,000/- (Fifteen Thousand) and cost of litigation Rs.5,000/- (Five Thousand) failing which the amount was directed to be paid with interest @ 6% p.a. from the date of order. Feeling aggrieved the insurance company opposite party has preferred this appeal.

2. Undisputedly the husband of the complainant / respondent was owner of motorcycle bearing registration No.CG-12-AL-2357 and got the vehicle insured from the opposite party / appellant for the period between 04.04.2019 to 03.04.2020 in which personal accident cover of Rs.15,00,000/- was also included. Facts of the case in brief, necessary for disposal of this appeal, are that on 16.07.2020 the insured husband of the complainant / respondent died due to an accident occurred on 06.07.2020. As per averments made in the complaint due to restrictions imposed because of Covid-19 pandemic situation, renewal of insurance policy could not be done but during that period relief was granted by the concerned Department by providing extension of insurance term. Insurance claim along with all relevant documents was submitted on 25.03.2021 but the insured sum of Rs.15,00,000/- was not given by the opposite party / appellant insurance company. Alleging which as deficiency in service complaint was filed before the District Commission.

3. The opposite party / appellant except the admitted facts denied all the adverse allegations leveled in the complaint and resisted the complaint mainly on the ground that the policy in question had already expired on 03.04.2020 and thus on the fateful date of incident 06.07.2020 the motorcycle of the deceased husband of the complainant/ respondent stood uninsured. Thereby the complainant / respondent does not come in the category of “consumer of the insurance company. Accordingly the insurance company has no liability under the policy in question as on the date of incident no insurance contract was in existence.

4. Learned District Commission in the impugned order observed that the opposite party has not filed conditions of policy renewal, grace period and other complete information, whereas at the time of issuance of policy complete information regarding the policy must be given to the policyholder. It was also observed that when renewal of the policy was due, lockdown was imposed in Katghora and in such a situation it was not possible for the policyholder to visit the Office of the insurance company for renewal of the policy. Ultimately, learned District Commission partly allowed the complaint with the directions as aforesaid in paragraph No.1.

5. Final arguments heard. Record perused.

6. Learned counsel for the appellant / opposite party reiterating their averments made in the written version argued that learned District Commission has failed to appreciate the fact that on the date of incident there was not insurance contract between the insurance company and the deceased husband of the respondent/ complainant. Learned District Commission has also erred in observing that due to Covid-19 pandemic situation the insurance company was duty bound to renew the policy after intimation to the policyholder, whereas no such notification or guideline was ever issued. It is prayed that impugned order be set aside allowing this appeal. Learned counsel for the respondent/ complainant has supported the impugned order and pray