J&K Commission Orders National Insurance To Pay ₹7.85 Lakh

The Jammu and Kashmir State Consumer Disputes Redressal Commission has directed National Insurance Company to pay ₹7.85 lakh for a vehicle washed away in floods. The Commission found the insurer guilty of service deficiency for rejecting a claim based on the vehicle's registration status. The complainant had initiated the registration process before the floods, which were caused by delays from the Regional Transport Office. The vehicle, a Wagon R Stingray VXI, was insured for ₹4,55,767, covering the period from July 28, 2014, to July 27, 2015. In September 2014, severe floods struck the Kashmir Valley, resulting in the loss of the vehicle. The Commission emphasized that insurers cannot deny claims solely due to registration issues when the insured has acted in good faith. This ruling underscores the importance of consumer rights in insurance claims, particularly in disaster situations.