Insurer cites policy breach to deny dacoity claim, finance firm wins Rs 44.54 lakh

The West Bengal State Consumer Commission ruled that a public sector insurance company must pay a financial firm Rs 44.54 lakh for cash lost in an armed dacoity in 2015. The commission rejected the insurer's denial of the claim based on the absence of certain security measures that were not required under the policy. The dacoity occurred on June 1, 2015, when armed miscreants entered a branch office and stole Rs 48.26 lakh collected through field operations.

The insurer rejected the entire Rs 48.26 lakh claim, citing a lack of a guard, CCTV, and a strong chest, as well as accounting lapses. However, the commission found that the policy's written terms could not be interpreted to require CCTV, a security guard, alarm, or a specific strong room. The branch had shutters and grills and the cash was being processed during business hours.

The insurer failed to prove any policy breach or link the omission to the loss. The commission accepted Rs 44,53,950 as the reconciled loss and rejected the unreconciled Rs 3,72,050. The insurer can deduct the Rs 1.45 lakh recovered by police only if it can prove that the money was actually returned to the complainant. The commission awarded 9 percent annual interest from the date of rejection until payment, along with Rs 1 lakh in litigation costs.