Landmark ruling: insurance claims for stolen vehicles not to be denied for fir delays in India - Drive Spark – 28th May 2024 ( INSU NEWS 25.5.2024 TO 31.5.2024 ) 

A recent order by the Consumer Court in India has ruled that insurance companies cannot reject claims for stolen vehicles solely due to delays in filing a First Information Report (FIR). This decision has significant implications for vehicle owners across the country. In India, all vehicles must be insured, including third-party liability insurance, which is mandatory. Various insurance options cater to different needs and cover potential losses, including theft. Understanding these options is crucial for vehicle owners.

Case Study: Farmer From Latur District A farmer from Latur district, Maharashtra, insured his vehicle with Tata AIG General Insurance Company. The vehicle was stolen several years ago. Despite repeated attempts, the police initially delayed filing an FIR. After a long struggle and several protests, the police finally registered the case. Consumer Court's Decision The court heard both parties and concluded that denying a claim based solely on the delay in FIR registration was unfair and unreasonable. It clarified that delays caused by police procedures were not the consumer's fault. Consequently, the court directed the insurance company to settle the claim and pay the farmer the due compensation. Implications For Vehicle Owners This order protects consumers' rights and prevents insurance companies from using such delays as a reason for denial. Vehicle owners should be aware of potential claim issues and seek necessary guidance to ensure a smooth claim experience.