National Consumer Disputes Redressal Commission (NCDRC): While disposing of a revision petition filed by the petitoner against Oriental Insurance Co. Ltd. seeking enhancement of relief by way of interest on the vehicle damage insurance claim arising from a fire incident, AVM J. Rajendra (Presiding Member) and Saroj Yadav, J. (Member), directed the insurer to pay interest at 7 per cent per annum on ₹4,68,000, from the date commencing 3 months after the incident until final payment, and ₹50,000 as litigation costs.
The dispute arose from damage caused to the complainant’s insured vehicle in a fire accident on 28 November 2013. The complainant lodged a claim with the insurer, which appointed a surveyor. The first surveyor assessed the loss at ₹4,68,000, while a subsequent surveyor assessed it at ₹4,00,000. After the insurer repudiated the claim, the complainant approached the District Forum.
The District Forum, by order dated 12 July 2017, directed the insurer to pay ₹4,68,000 in accordance with the first survey report, subject to deduction of ₹40,000 towards salvage. It also directed payment of ₹19,800 towards the salvage amount received by Rahul Motors, awarded punitive damages of ₹2,50,000, and ordered payment of ₹20,000 as complaint expenses, along with interest at 12 per cent per annum from 21 January 2014.
The insurer challenged that order before the State Commission and vide order dated 3 August 2018, the State Commission held that the complainant was entitled to the assessed loss of ₹4,68,000 but set aside the punitive damages and modified the treatment of the salvage amount. The complainant subsequently approached the instant court, contending that the State Commission had substantially reduced the relief without awarding any interest.
After considering the records and submissions, the National Commission observed that the incident had caused substantial damage to the insured vehicle and that, while determining the insurer’s liability for the assessed loss of ₹4,68,000, the State Commission had not awarded interest.
Considering the nature of the case and the submissions made, the National Commission directed Oriental Insurance to pay interest at 7 per cent per annum on ₹4,68,000, commencing three months after the date of the incident and continuing until final payment. It directed that payment be made within 2 months from the date of the order. In the event of default, the interest rate for the delayed period would be 10 per cent per annum.
The Commission further directed the insurer to pay ₹50,000 to the complainant as litigation costs and disposed of the petition.
[Dharmendra Singh Palsaniya v. Oriental Insurance Co. Ltd., Revision Petition No. 2801 of 2018, decided on 6-10-2026]
Advocates who appeared in this case:
For the Petitioner(s): Ms. Simran Singh, Advocate
For the Respondent(s): Mr. Ajay Singh, Advocate
