Insurance Firm Ordered to Pay ₹3.5L for Stolen Car Compensation

A Kerala consumer court orders NICL to pay ₹3.5L to a car owner after rejecting his theft claim, citing a sale dispute. Justice prevails!

The car was stolen in 2012 while insured. NICL rejected the claim, stating the owner had sold it and had no insurable interest.

The commission ruled the owner valid, as the car's registration remained in his name, per the Motor Vehicles Act, 1988.

Citing a Supreme Court order, the court held that ownership depends on registration records, not just sale agreements.

NICL's rejection of the claim was deemed a deficiency in service. The company must pay ₹3.5L plus ₹10K compensation.

The ruling upholds consumer rights, ensuring insurance firms honor valid claims despite technical disputes.

The ruling upholds consumer rights, ensuring insurance firms honor valid claims despite technical disputes.

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