Pay Rs 8K compensation to litigant, insurance firms told

Avneet Kaur

Jalandhar, July 24

A city resident has accused an insurance company, a financer, and an authorised service centre of unfair trade practices and negligence. The complaint alleged that despite completing all the necessary requirements, the insurance claim for a damaged mobile phone had not been settled by the involved parties.

45 days given for compliance

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• The Consumer Commission directed both the companies to pay Rs 9,457, the repair charges paid to service centre by the complainant, along with an interest rate of 6 per cent per annum from July 29, 2020, until the amount is realised.
• Additionally, they were ordered to pay compensation of Rs 8,000, including litigation expenses, for causing mental harassment to the complainant. Both parties were given 45 days to comply with the order

According to the complainant, Sangharash Kumar, he purchased an OPPO Reno 2F 8 128 GB on February 17, 2020, from a dealer. The phone was insured by the HDFC Ergo General Insurance company, who had a contract with an insurance company CPP Claims Management. The insurance policy, starting from February 17, 2020, until February 15, 2021, was initiated by the financer on behalf of the owner. A premium of Rs 1,924 was paid for the insurance to HDFC Ergo.

The incident in question occurred on July 28, 2020, when the owner accidentally dropped the mobile phone while descending a flight of stairs, resulting in damage. Following the incident, he approached the financer i.e., Bajaj Finserve, who directed them to contact the insurance company, who further advised him to have the phone repaired at an authorised service center and obtain a repair quotation.

“Upon visiting the service centre, the owner was quoted Rs 9,457 for the repairs, which were promptly paid in cash. The damaged phone was left with the service center for repairs on the same day. On July 29, 2020, the phone was returned to the owner after repairs were completed, along with the previously damaged part. The owner then submitted all the required documents, including the original bill, consumer claim form, and a cancelled cheque to the insurance company,” claimed the complainant.

He said despite fulfilling all the necessary requirements for the insurance claim, the owner did not receive any communication or settlement from the said insurance firms. “Multiple attempts were made to seek resolution from Bajaj Finserve, dealer, service center etc, who redirected the owner back to the same insurance companies, claiming they had no responsibility in reimbursing the claim amount,” he added.

The complainant then approached the consumer commission to seek justice.

In response to the complaint, CPP Claims Management claimed that they were not the insurer but a facilitator and all claims were to be processed and settled by the insurance company HDFC Ergo General Insurance. However, after going through all the evidences, the complaint against CPP Claims Management and HDFC Ergo General Insurance was partially upheld.

The Consumer Commission directed both the companies to pay Rs 9,457, the repair charges paid to service centre by the complainant, along with an interest rate of 6 per cent per annum from July 29, 2020, until the amount is realised. Additionally, they were ordered to pay compensation of Rs 8,000, including litigation expenses, for causing mental harassment to the complainant. Both parties were given 45 days to comply with the order.