Insurer told to pay ₹3.5 lakh for stolen gold, ₹50,000 as compensation

The Dharwad District Consumer Disputes Redressal Commission has ordered the United India Insurance Company to compensate a resident of Tadakod in Dharwad district for stolen gold jewellery, totaling ₹3,50,822 plus 10% interest. The commission also ruled that the insurer must pay ₹50,000 in compensation for mental anguish and inconvenience suffered by the policyholder, and an additional ₹10,000 to cover litigation expenses.

The decision follows a complaint filed on May 15, 2025, by Prasad Suryavamshi, who had insured two gold chains worth ₹3,50,822 with the United India Insurance Company. The jewellery was taken while his mother was wearing it and traveling to her hometown. Despite notifying the insurer of the theft, the company initially refused to pay the claim, arguing that the jewellery had been lost due to the complainant's mother's negligence.

The Commission confirmed the purchase and insurance of the gold jewellery, noting the theft occurred during the policy's validity and supported by a surveyor's report. Recognizing the policy's purpose to provide financial protection against unforeseen events like theft, the Commission ordered the insurer to settle the claim, including the interest and additional compensation, within one month.