‘Untraceable report not essential to insurance claim’

Saini lodged a First Information Report (FIR) at Mohali,and also approached the insurance company for the claim. In February 2006,the company asked Saini to submit the untraceable report within seven days,failing which his case would to be treated as closed.

Saini requested them that the police was investigating the case,and the case should be closed till the untraceable report was received from the court. Saini said that the untraceable report was issued by the court in December 2008. When he approached the company with the report,he was told to wait,since his file could not be traced in the company’s office.

Saini complained that in October 2009,the company finally accepted the untraceable report along with the keys and original registration certificate. However,his claim was not settled. In March 2010,Saini was shocked to receive a letter from the company that his claim was closed for want of the ‘untraceable report’. Aggrieved,he filed a case in the Forum.

In its reply,the company stated that the case had been closed as ‘No Claim’ in March 2006. The company stated that the case could not be reopened,as the claim was time-barred. The company said the complainant’s file was not traceable now,as it had been mixed up with old records. The company claimed that there was no deficiency in service on their part,and the complaint must be dismissed.

While considering the case,the Forum observed that the ‘untraceable report’ is given if the police fails to find the culprit,and the stolen articles are not recovered. “The complainant has no control on the investigation of the police. Even after the untraceable report is submitted to the court,it is the discretion of the court to accept it or to send the case for re-investigation. The complainant has no control over the court also,” observed the order given by the Forum.

The Forum stated that in this light,the policy holder could not be held responsible for not submitting the ‘untraceable report’ on time.

The Forum further noted that “there was no clause in the terms and conditions of the insurance policy to show that production of untraceable report is a condition precedent for settlement of the claim.” Hence,closing the case of the complainant amounted to deficiency of service,said the Forum,and directed the company to compensate him accordingly.