Insurer rejects car claim over prior damage, businesswoman wins Rs 5.60 lakh payout

A Hyderabad District Consumer Commission has ordered an insurance company to pay Rs 5.60 lakh to a 43-year-old businesswoman after finding fault in their service for rejecting her car insurance claim. The incident occurred in July 2021 when the woman's four-wheeler was involved in an accident in Narsingi, resulting in damage to its front portion.

The insurance company rejected the claim, stating that the vehicle had suffered pre-existing damage and that the owner failed to disclose its condition. The commission found insufficient evidence to support these allegations and ruled in the woman's favor, granting her Rs 5 lakh as compensation, along with Rs 50,000 for mental and physical distress. The insurance company was also required to cover the litigation costs.