The UT District Consumer Dispute Redressal Forum has directed Reliance General Insurance to pay a compensation of Rs 7,000 to a city resident for causing mental harassment and Rs 5,000 as costs of litigation.

In addition, the company is to refund Rs 436 charged as extra premium on the car insurance.

According to the complainant, Nandita Kaushik, she got her new Indigo LX DICOR insured from Reliance for a sum of Rs 5.06 lakh in June 2007.

The policy was valid till 20 June 2008. Kaushik alleged that despite making several calls to the insurance company, the insurance policy was not supplied to her till the end of the policy period.

She stated the company erroneously informed her on telephone that the period of insurance policy had come to an end on 15 May 2008 and she was advised to get the policy renewed.

Then, despite several requests to the company to tell the reasons for the early expiry of the insurance policy, she received no reply.

According to the complainant, she was fooled into getting her car insured 22 days ahead of the period of expiry of the insurance policy.

Consequently, the insurance company charged a sum of Rs 436 in excess for the said period.