Be responsible before you stake claim

Pushpa Girimaji

My brand new car, which I had bought only four months ago, got stolen two months back. However, the insurance company is refusing to indemnify my loss. At the time of theft, my car was being driven by my driver. He had gone to drop a relative at the railway station late in the night and, according to him, stopped on the roadside to answer the call of nature. As he was going to be right beside the car, he did not switch off the engine. While he was easing himself, a man appeared from nowhere, got into the car and drove away. I had taken a bank loan to buy the car and the insurance company’s refusal to pay will ruin me financially. What do I do? Can I challenge the decision of the insurance company before the consumer court?

I can well imagine your predicament, but, unfortunately, the consumer court is not likely to help you because only recently, in a similar case, the apex consumer court (the National Consumer Disputes Redressal Commission) has held that the insurer was justified in repudiating the claim.

In this case, the car belonged to a hotel and, on May 1, 2013, the driver had taken the car to the airport early in the morning to drop a guest. On his way back, he stopped the car at Vile Parle and went to ease himself. However, he left the car idling, with the key in the ignition. Suddenly, he saw a car stop by and before he could realise what was happening, a man got out, entered the hotel’s car and drove away.

When the police failed to trace the car, the owner of the car filed a claim with the insurer, who refused to indemnify his loss on the ground that the insured had violated policy conditions that required the insured to take all reasonable care to safeguard the vehicle from loss and damage. The driver of the vehicle had not only failed to lock the car when he got out, but had kept the engine running , with the key in the ignition. The insurance company also pointed out that leaving a vehicle idling was also a violation of the Motor Vehicles Act , which said that “No person driving or in charge of a motor vehicle shall cause or allow the vehicle to remain stationary in any public place, unless there is in the driver’s seat a person duly licenced to drive the vehicle or unless the mechanism has been stopped and a brake or brakes applied or such other measures taken as to ensure that the vehicle cannot accidently be put in motion in the absence of the driver.”

The apex consumer court, in this case, looked at the issue in detail and also its own earlier decisions on the subject ( there have been several similar cases) and concluded that leaving a vehicle unlocked and with its engine idling and the key in the ignition was sheer negligence and a clear violation of the policy condition and the insurer was therefore justified in refusing to make good the loss suffered by the insured. (M/S Keer Hotels Pvt Ltd Vs Tata AIG General Insurance Company Ltd , RP NO 2870 of 2015, date of order: April 3, 2018)

So, the chances of your getting relief from the consumer court are very slim.

What is my option then?

I would suggest that you pursue the case with the police. If they take interest, I am sure they will be able to trace your car. Meanwhile, talk to your bank , explain the situation to them and get them to collect only the principle amount on the loan and not the interest, this being an exceptional circumstance. Similarly, write to the insurance ombudsman and see if he can get the insurer to pay at least some part of the insurance amount to help you out.

Meanwhile, I would reiterate the need for consumers to follow certain basic policy conditions (and also safety precautions) such as always locking up the car while leaving it parked. Even if you are leaving the car for a minute, switch off the engine, lock it and take the key with you. And if your car is being driven by a driver, warn him about it too. Similarly, always ensure that the car is driven by someone with a valid driving licence and renew your vehicle insurance in time.