Archive · 24 Jul 2026
Shimla Consumer Commission Orders Insurance Payout
A man in Shimla had his ancestral home destroyed in a fire.
He had insured the house for Rs 1.25 crore.
The insurance company, Oriental Insurance, delayed paying him, saying he didn't give all the needed papers and that he only owned a small part of the house.
The man said he gave all the papers and that the other family members agreed he should get the money.
The court looked at the case and said the insurance company was wrong.
They ordered the company to pay the man Rs 1.25 crore.
The court also said the insurance company was being unfair by delaying the payment and making up excuses.
The man also got some extra money for the trouble he went through.
A homeowner's ancestral house in Shimla was completely destroyed in a fire on September 2, 2023.
The house was insured for Rs 1.25 crore under an Oriental Insurance Bharat Griha Raksha policy.
Oriental Insurance delayed the claim, alleging non-submission of documents and disputing the complainant’s ownership share.
The District Consumer Commission in Shimla ordered Oriental Insurance to pay the homeowner Rs 1.25 crore, plus Rs 75,000 for mental harassment and Rs 25,000 in litigation costs.
The commission rejected the insurer’s objections over documents and co-ownership, terming the insurer’s repeated demand for various documents as “delay tactics.”
- Who
- A homeowner in Shimla
- What
- A fire destroyed his ancestral home, and he won a Rs 1.25 crore insurance payout after a legal battle.
- When
- The fire occurred on September 2, 2023, and the ruling was made on July 2.
- Where
- The incident took place in Daroti village, Shimla, and the case was heard by the District Consumer Commission in Shimla.
- Why
- The insurer delayed the claim, alleging non-submission of documents and disputing the complainant’s ownership share.
Homeowner's Perspective
Insurer's Perspective
Ownership Share
Homeowner's Perspective
The homeowner argued that he was entitled to the full insured amount as other family members had no objection to him receiving the insurance proceeds.
Insurer's Perspective
Oriental Insurance claimed the homeowner was entitled to only one-ninth of the assessed amount due to the ancestral property having nine co-owners.
Documentation and Delay
Homeowner's Perspective
The homeowner claimed all required documents were furnished and that the insurer was deliberately delaying payment.
Insurer's Perspective
Oriental Insurance argued that the claim could not be processed due to the complainant's failure to furnish all requisite documents despite repeated requests.
Loss Assessment
Homeowner's Perspective
The homeowner stated that independent assessments valued the loss at over Rs 2.70 crore and later Rs 2.93 crore, well above the insured amount.
Insurer's Perspective
The insurer's surveyor assessed the net payable amount at Rs 80.17 lakh after applying depreciation and salvage deductions.
- Insured Amount
- Rs 1.25 crore
- Date of Fire
- September 2, 2023
- Location of Fire
- Daroti village, Shimla
- Insurance Policy
- Oriental Insurance Bharat Griha Raksha policy
- Compensation Awarded
- Rs 1.25 crore
- Mental Harassment Compensation
- Rs 75,000
- Litigation Costs
- Rs 25,000