Insurance company told to cough up claim amount

The chairman of the Lok Adalat, C.D. Gupta, and members R.S. Khokhar and Nand Lal have directed the company to make the payment within 45 days. In case of failure, the consumer would be entitled for an interest at the rate of 9 pc from the day of the filing of the case.

Shingara Singh of Hargobind Nagar, Giaspura, had filed a case before the adalat and had submitted that he had purchased an Indica car and the vehicle was insured with the company.

The car had met with an accident in which it was totally damaged and matter was duly reported to the police as well as insurance company. The company deputed a surveyor, who assessed the loss. But the accident claim was not paid to the applicant.

The Lok Adalat observed that the company had denied the claim on the plea that the vehicle was being used for commercial purpose even though it was not insured as one. But the court held that the company had failed to prove that at the time of the accident.