Archive · 28 Sep 2026
Hyderabad Consumer Commission Orders Insurer to Pay Rs 5.60 Lakh
A businesswoman’s car was damaged in an accident in July 2021.
She asked her insurance company to pay for the repairs.
The company refused, saying the car was already damaged before the accident.
It also questioned when the accident was reported and noted that ownership had recently changed.
The woman took the dispute to a consumer commission in Hyderabad.
The commission said the insurer had not provided enough proof for its allegations.
It ordered the insurer to pay Rs 5 lakh for the claim and additional money for her suffering and legal costs.
The total payment ordered was Rs 5.60 lakh.
A Hyderabad District Consumer Commission ordered an insurer to pay Rs 5.60 lakh to a businesswoman.
The woman’s vehicle was damaged in an accident at Narsingi on July 21, 2021.
The insurer rejected her claim, alleging prior damage, ownership change and non-disclosure.
The commission said those allegations were not supported by substantial documentary evidence.
The award includes Rs 5 lakh for the claim, Rs 50,000 compensation and Rs 10,000 litigation costs.
- Who
- A 43-year-old businesswoman and an unnamed insurance company were involved in the dispute.
- What
- The Hyderabad District Consumer Commission ordered the insurer to pay Rs 5.60 lakh after rejecting its reasons for denying a vehicle insurance claim.
- When
- The accident occurred on July 21, 2021; the commission’s order was dated August 18.
- Where
- The accident occurred at Narsingi, and the case was heard by the Hyderabad District Consumer Commission.
- Why
- The commission found that allegations of prior damage, ownership change and non-disclosure were not proved with substantial documentary evidence.
Businesswoman’s Case
Insurer’s Defence
Cause of vehicle damage
Businesswoman’s Case
She said the vehicle was damaged in the July 21, 2021 accident and that the loss was covered under her policy.
Insurer’s Defence
The insurer argued that forensic findings showed the damage had occurred before the reported accident.
Timing of notification
Businesswoman’s Case
She said she informed the insurer on August 20, 2021, within the stipulated period under the policy.
Insurer’s Defence
The insurer argued that she reported the loss eight days after the alleged incident and failed to explain the delay.
Ownership and disclosure
Businesswoman’s Case
She disputed the insurer’s reasons for rejecting the claim and alleged deficiency in service and unfair trade practices.
Insurer’s Defence
The insurer pointed to an ownership transfer shortly before the accident and alleged that the vehicle’s pre-existing condition had not been disclosed.
- Total award
- Rs 5.60 lakh
- Claim amount awarded
- Rs 5 lakh
- Mental agony and physical trauma compensation
- Rs 50,000
- Litigation costs
- Rs 10,000
- Surveyor’s estimated loss
- Rs 6.21 lakh
- Claim rejection date
- October 8, 2021
- Payment deadline
- Within 45 days