Whether delay in finalizing Insurance Claim is a deficiency in service on part of Insurance Company?

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                                                                                                                                                                                                                                  Shubham Budhiraja[1]

A took marine Insurance from B. The Ship sank and A filed its claim. National Consumer Disputes Redressal Forum (NCDRC) allowed the claim relying on statements of crew members of ship and on reason that there is 2 year delay in survey report. The Supreme Court set aside the NCDRC order holding that delay per se cannot be deficiency. There are contradictions in statements of crew members which cannot be ignored. NCDRC totally ignored the weather report of India and Oman which shows whether as clean and fair[2]

 

(I)                 The delay on the part of the Insurance Company in securing the Final Survey   Report   and   the   further   delay   in   issuing   the   letter   of repudiation, cannot per se lead to the complaint being allowed.

 

(II)               The delay in processing the claim and delay in repudiation could be one of the several factors for holding an insurer guilty of deficiency in service.  But it cannot be the only factor.


[1] Advocate, Delhi High Court [LLB, ACS, BCOM(H)], ShubhamBudhiraja02@gmail.com

[2] CIVIL APPEAL NO.7573 OF 2021, Supreme Court of India

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