#Claim Repudiation

Insurers may not rely on informal security measures not written into the policy to deny coverage, and a corporate entity is recognised as a consumer under the Consumer Protection Act. The commission awarded the claimant Rs 44.53 lakh with interest and costs. This ruling mandates that policy exclusions be expressly documented and extends consumer protections to corporate borrowers.

The West Bengal State Consumer Commission ruled that insurers cannot rely on Insured Declared Value (IDV) as the default payout - compensation must be tied to verified actual loss, with the burden on the insurer to prove colour alteration or fraud. This clarifies that surveyor reports alone cannot override documented damage, empowering policyholders against arbitrary claim repudiation.

Delhi State Consumer Commission rules that insurers cannot repudiate theft claims for unregistered vehicles if the policy contains no explicit exclusion and the vehicle was not being driven at the time of theft. The ruling clarifies that statutory compliance under Section 39 MV Act is not a blanket bar to insurance coverage, impacting policyholders and insurers alike.