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Insurance claim denied over delay in reporting vehicle theft

A district consumer forum here has rejected a man's plea seeking insurance claim on his stolen vehicle, saying he had taken over a month to inform police and the insurance company about the theft, which was not "normal human conduct".

The New Delhi District Consumer Disputes Redressal Forum rejected the complaint of Kaushlendra Singh after noting that due to the delay, the insurance company could not get an opportunity to investigate the theft of his motorcycle and was entitled to repudiate the claim.

"We found that the complainant has failed to explain his conduct in not immediately informing the police and waiting for one-and-a-half months to lodge a report. Such conduct is not normal human conduct in case of theft.

"This creates doubt in the case of complainant and Opposite Party (insurance company) is entitled to repudiate the claim for violation of conduct in such circumstances as Opposite Party has got no opportunity to get the theft investigated," said the forum presided by CK Chaturvedi and comprising members SR Chaudhary and Asha Kumar.

Delhi resident Singh had approached the forum claiming that his motorcycle was stolen on September 29, 2009, after which he informed police and the insurance company.

However, the company rejected the claim, whereupon he had approached the forum, he said.

In its reply, the company said that Singh only informed police after about one-and-a-half months of the theft, that is, on November 11, 2009 and, thereafter, notified the firm.

It was breach of the policy's terms and conditions according to which, in case of loss by theft, the insurance company should be immediately informed, the firm said.

Article referred: http://www.business-standard.com/article/pti-stories/insurance-claim-denied-over-delay-in-reporting-vehicle-theft-114063000909_1.html

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