Archive · 26 May 2025
Insurance Ordered to Pay Full Claim After 'Old House' Defence Rejected
A man's house was damaged in a storm.
His insurance company tried to pay him much less money because they said the house was old.
But, a consumer court said the insurance company had to pay the full amount.
The court pointed out that the insurance company should have known how old the house was when they gave the insurance in the first place.
The insurance company was ordered to pay the full amount, plus extra money for causing the homeowner stress.
A policyholder's house was damaged in a storm in 2021.
SBI General Insurance tried to reduce the compensation citing the property's age.
The District Consumer Disputes Redressal Commission (DCDRC) rejected the insurer's claim.
The forum ordered SBI General Insurance to pay the full assessed amount of approximately Rs 1.1 lakh.
The insurance coverage totaled Rs 19 lakh under two policies.
- Who
- Gyan Prakash Saxena and SBI General Insurance.
- What
- The consumer forum ruled that SBI General Insurance must pay full compensation for damages caused by a storm.
- When
- May 28, 2021, when the storm damaged the house.
- Where
- Ghaziabad, India.
- Why
- To address the insurance company's attempt to reduce compensation based on the property's age.
Homeowner
SBI General Insurance
Compensation Amount
Homeowner
The homeowner's claim for the full compensation amount as assessed.
SBI General Insurance
The insurance company's claim of 'old and dilapidated' property to reduce compensation by 73%.
- Policyholder
- Gyan Prakash Saxena
- Insurer
- SBI General Insurance
- Claim Amount
- Rs 1.1 lakh
- Incident Date
- May 28, 2021
- Coverage
- Rs 19 lakh (total from two policies)
- Policy Validity
- Valid until November 2027
