#consumer insurance claim

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.

The NCDRC ruled that an insurer’s refusal to settle a motor insurance claim without challenging the repair estimate or submitting opposing evidence amounts to deficiency in service under the Consumer Protection Act. This sets a clear precedent: insurers must actively justify denials, not remain passive, protecting policyholders from arbitrary claim rejections.

Uttarakhand State Consumer Disputes Redressal Commission rules that insurers cannot impose standard deductions (e.g., 25% for 'disposal of goods') when fire destroys all stock, leaving no salvage. The ruling reinforces that loss assessments must align with actual damage, protecting policyholders from unfair claim reductions.