United India Insurance penalized for rejecting car insurance claim
By Neelima Shankar
Mar 27, 2012
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Public sector insurance provider United India Insurance Company has been penalized by the Tiruchi District Consumer Disputes Redressal Forum regarding rejection of claim put by a person under consequences of theft of his insured motorcycle.

The company has been asked to not only pay the insured amount to the claimant but also pay a compensation of Rs 2500 to the person due to the stress offered to him.

The claimant, P.Ramkumar of Puthur had lodged in for a claim related to theft of his motorcycle. The theft had taken place on November 07, 2007.

He informed the car insurance company about the case on November 09. Also, he filed a complaint with the police and provided the receipt thereby obtained to the insurance company.

However, when the company rejected his claim on August 04,2010 saying that the claim was rejected as the claimant took unnecessary time in reporting the theft.

After taking the case to the consumer court, the decision was finally given in Ramkumar's favor. United India Insurance was thereby asked to pay Rs 17000 (the insured amount) with interest of 8.5% for the tenor from the date of filing of complaint and date of payment of claim amount.


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