Piling rig crash: NCDRC orders Rs 2.2 crore insurance payout to private construction firm
The National Consumer Disputes Redressal Commission has directed an insurance firm to pay Rs 2.20 crore in insurance compensation to a private construction company following a piling rig accident in Odisha in 2013. The commission ruled that the insurer could not reject the claim without compelling evidence of fraud, as suspicion alone cannot be considered proof.
The construction firm had purchased a hydraulic piling rig for Rs 3.18 crore and was transported to Delhi when it met with an accident in Bangriposi Ghat, Mayurbhanj district, Odisha. The insurer approved the claim in 2014 but later rejected it, alleging fraud, misrepresentation and suppression of material facts. The commission found that the insurer lacked sufficient evidence to establish this, and found the rejection to be deficient service.
The commission ordered the insurer to pay Rs 2.20 crore along with interest and litigation costs within two months.
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