In a car accident case, commission rules “total loss”; directs full payment with interest and damages
Dharamshala— In a decisive ruling, the District Consumer Disputes Redressal Commission has held National Insurance Company Limited guilty of service deficiency and ordered it to pay ₹3,40,000 to the complainant along with 9% annual interest.
The case, titled Vishal Mahajan vs National Insurance Company Limited, was filed by Vishal Mahajan, registered owner of vehicle number HP-90-7070. The car was insured under a policy valid from August 3, 2024, to August 2, 2025.
On January 12, 2025, the vehicle met with an accident near KCC Bank in Barol. The estimated repair cost was ₹3,17,400. The surveyor declared the damage as “total loss” since the repair cost exceeded 75% of the vehicle’s Insured Declared Value (IDV) of ₹3.40 lakh.
Despite this, the insurance company offered only ₹1,83,600, arbitrarily applying depreciation on metal and rubber parts. The commission ruled that depreciation cannot be applied in cases of total loss exceeding 75% of IDV.
The commission found clear negligence and ordered the company to pay the full IDV amount of ₹3,40,000 with 9% annual interest. Additionally, the company must pay:
- ₹34,000 for mental and physical distress
- ₹15,000 as litigation costs
- ₹7,000 towards parking charges
The commission also directed the Regional Licensing Authority (RLA) Shahpur to cancel the registration of vehicle number HP-90-7070 and instructed the insurance company to take possession of the vehicle’s salvage.
