An insurance claim for the theft of a vehicle is liable to be repudiated when there is an inordinate, unexplained delay in reporting the incident to police and the insurer, coupled with gross negligence by the insured in failing to safeguard the vehicle as per policy conditions.

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Order: (Per Smt.Dr.G.Radha Rani, Hon’ble President)

1. This appeal is filed by the Opposite Party Insurance Company aggrieved by the order of the District Commission, Warangal in CC.No.186/2019 dated 14.09.2021 in allowing the complaint in part and directing the Opposite Party to pay an amount of Rs.40,000/- with interest @ 7.5% p.a. from the date of filing of the complaint i.e., 19.11.2019 till the date of realization to the Complainant and Rs.10,000/- towards mental agony and Rs.5,000/- towards costs.

2. For the sake of convenience, the parties are hereinafter referred as arrayed before the District Commission, as Complainant and Opposite Party.

3. The case of the Complainant was that, the Complainant was the registered owner of the motor cycle bearing No.TS 03 EM 0583 worth Rs.54,174/- and the same was insured with the Opposite Party Insurance Company vide policy Certificate No.3005/38708332/140173/000 which was valid from 08.11.2017 to 07.11.2018 and the same was subsisting. His motor cycle was stolen on 16.11.2017 by unknown persons, as such a complaint was made by his father to the concerned police and a case was registered as Crime No.19/2018 under Section 379 of IPC before the P.S. Inthezargunj and the Complainant had applied for claim of insurance before the Opposite Party, but the Opposite Party without paying the claim amount of Rs.40,000/- informed the Complainant on 18.09.2018 repudiating the claim. The Complainant contended that the Opposite Party without paying the insurance claim amount was harassing him. He got issued a legal notice through his counsel on 02.11.2018 claiming the insurance amount, but the Opposite Party was not responding to the demand made by him. As such, lodged the complaint seeking a direction to the Opposite Party to pay the insurance claim amount of Rs.40,000/- (75%) to the Complainant along with future interest and for damages of Rs.1,00,000/- and costs of the petition.

4. The Opposite Party filed written version admitting the issuance of a two wheeler package policy but contended that the IDV value of the vehicle was Rs.45,620/- but not Rs.54,174/- as stated by the Complainant. They further contended that as per their investigation, on 16.11.2017 at about 11:00 A.M. the Complainant along with his father went to Balaji Nagar for shopping and parked the vehicle but left the key in the vehicle and went inside. When he came back, he found his vehicle missing. The vehicle was stolen on 16.11.2017 between 11:00 A.M. to 1:00 P.M. from the parking area, but the same was informed to the Opposite Party after 102 days and to the police after 65 days. Thus the alleged theft of the vehicle was not informed to the Opposite Party or to police authorities immediately as per policy conditions. The same would amount to violation of the terms and conditions of the contract of insurance. Hence, the Opposite Party was not liable to pay any amount. The Opposite Party contended that as per the terms and conditions of the policy, in case of theft or criminal act, the insured shall give immediate notice to the police and shall co-operate with the Company in securing the conviction of the offender, but the Complainant violated the terms and conditions of the policy in not informing the theft of his motor cycle to the police and to the Opposite Party within time. The Opposite Party further contended that as per the policy terms and c