Insurer denied stolen car claim over parking 500m away, man wins Rs 8 lakh payout

The Delhi Consumer Commission has ruled in favor of car owner Naseem Ali, directing insurance company United India Insurance Company Private Limited to pay Rs 8 lakh after initially denying his stolen car claim. The commission rejected the insurer's arguments that the vehicle's high mileage suggested commercial use and that parking it 500 meters from Ali's home amounted to negligence, as they lacked "cogent and reliable" evidence to support these claims.

The commission awarded Ali Rs 30,000 for mental agony and litigation expenses, finding that the insurer's actions constituted a deficiency in service and unfair trade practice, causing him mental distress.

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