Archive · 6 Jun 2025
SBI Insurance Ordered to Pay ₹11.16 Lakhs Over Claim Delay
A consumer commission in Chhattisgarh ruled against SBI General Insurance.
They found the company was too slow in paying a claim for a car accident.
A firm in Raipur had a car accident, and the insurance company agreed on a loss amount.
The insurance company told the firm to sell the damaged car.
But, the insurance company didn't pay the full amount.
The commission said this was wrong because the insurance company already agreed to the loss and told the firm to get rid of the car.
Because of this, SBI was ordered to pay the rest of the money.
They also have to pay extra for causing the firm stress and for the legal costs.
The company has to pay the remaining amount with interest.
The Chhattisgarh State Consumer Disputes Redressal Commission ordered SBI General Insurance to pay Rs 11.16 lakh.
The order was given due to deficiency in service and unfair trade practice regarding a vehicle insurance claim.
The commission also awarded Rs 50,000 for mental agony and Rs 5,000 for litigation costs.
The District Consumer Disputes Redressal Commission had previously dismissed the complaint.
The insurance company had instructed the disposal of the damaged vehicle after assessing the loss.
- Who
- Chhattisgarh State Consumer Disputes Redressal Commission and SBI General Insurance Company Limited.
- What
- The State Consumer Commission directed SBI General Insurance to pay Rs 11.16 lakh for delayed claim settlement.
- When
- The accident occurred on November 8, 2019. The ruling was made by the commission.
- Where
- Raipur, Chhattisgarh.
- Why
- Due to deficiency in service and unfair trade practice by SBI General Insurance Company in settling a vehicle insurance claim.
Insurance Company's View
Consumer Commission's View
Reason for Delay
Insurance Company's View
The claim was pending due to lack of clarifications and documents.
Consumer Commission's View
The insurance company should pay since they agreed on the loss and instructed the disposal of the vehicle.
- Amount to be Paid
- Rs 11,16,801
- Insurance Company Involved
- SBI General Insurance Company Limited
- Complainant
- Raipur-based firm
- Compensation for Mental Agony
- Rs 50,000
- Litigation Costs
- Rs 5,000
- Accident Date
- November 8, 2019
- Annual Simple Interest
- 6%