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Insurance Co calls accident ‘manipulated’: BMW owner gets 36L compensation from Court

The Bangalore Additional District Consumer Disputes Redressal Commission has directed Tata AIG insurance company to pay Rs 36.57 lakh to a BMW car owner. The owner of the car – Sharath Kumar Munireddy, who is a resident of HAL, Third Stage, Bengaluru, registered a complaint against the insurance company after they said that the accident is ‘manipulated’ and refused any compensation.

Insurance Co calls accident ‘manipulated’: BMW owner gets 36L compensation from Court

The consumer court has directed Tata AIG General Insurance Company to pay Rs 36.57 lakh, based on the value of the BMW sedan’s invoice, which is dated March 12, 2014, along with an interest of 12 per cent per annum from the date of repudiation, March 10, 2020, till the payment of the entire amount.

Munireddy said in his complaint that he was going to Chitradurga for work on 5th January 2020. He was driving through and was reaching Bellaghatta village around 9:30 PM when all of a sudden a dog came across the road. Munireddy tried to avoid hitting the dog and he took a sharp right turn. That is when he lost control of his car and it fell into a pond.

The owner also said that as the car began to sink in the pond, the electrical component and engine of the car went off and the windows began to open. His co-passenger Nagabhushan Reddy came off the vehicle with great difficulty before the vehicle sank.

The insurance company refused to compensate for the damage, which was classified as a total loss. After the survey and statement of the owner, the insurance company said that they think that the story of the accident is manipulated and denied any claims.

Insurance Co calls accident ‘manipulated’: BMW owner gets 36L compensation from Court

Munireddy lodged an official complaint with the consumer court after the insurance company refused to pay.

Tata AIG directed to pay

The commission has directed the Tata AIG Generation Insurance Company to pay Rs 500 per day to the complainant from March 10, 2020, onwards until the payment of the entire amount to compensate for the inconvenience caused to the complainant and his family members.

The consumer court also noted that the vehicle was lying unused in the garage without any repair and the owner could not use the vehicle for a long time. It has also directed the Tata AIG General Insurance Company to pay Rs 25,000  towards damages for causing mental agony and hardship. Additionally, the insurance company will pay Rs 15,000 towards litigation expenses.

After getting rejection from the insurance firm, Munireddy approached the Bangalore I Additional District Consumer Disputes Redressal Commission seeking compensation after Tata AIG Insurance Company refused to compensate. The insurance company sent a letter dated March 18, 2020, informing that the accident case is manipulated in nature and is created for undue benefits under the said policy, which is taken on the basis of a return to invoice valuation, especially when the vehicle was close to six years old.

Via BangaloreMirror