`Negligent policy holder can`t claim insurance money`
The insurance company is not liable to pay the claim if a policy holder is negligent and careless in dealing with valuable items.
New Delhi: The insurance company is not
liable to pay the claim if a policy holder is negligent and
careless in dealing with valuable items, the Delhi State
Consumer Commission has said.
While dismissing a complaint against an insurance
company, the Commission said the policy conditions provide
that the policy holder must take all reasonable steps to
safeguard the property insured against accident, loss or
The National Insurance Corporation Limited rejected
the claim of policy holder Mahender Goel who suffered loss
when a bag containing cash amount of Rs 9.85 lakh got stolen
from his car in 2000, saying that he had not taken reasonable
care to safeguard his valuables.
"It is not possible to say that Goel took reasonable
care of his cash. He must suffer for his own negligence, and
the complaint must therefore fail," the Commission, comprising
President Justice B A Zaidi and Member M L Sahni, said.
The theft took place when he got down to change the
tyre of his car, following which he registered an FIR with the
Earlier, the insurance company contended that Goel had
failed to take reasonable steps and care to ensure safety of
the cash being carried in transit and had not locked the
doors of the car while changing the tyre.
Goel contested the contention, seeking Rs three lakh
compensation besides the claim amount from the insurance
company for deficiency in service in rejecting his claim.