Dharamshala— The District Consumer Disputes Redressal Commission has ruled against National Insurance Company Limited for failing to provide adequate service, mandating a compensation of ₹3,40,000 to the claimant, along with 9% annual interest.
The case, known as Vishal Mahajan vs National Insurance Company Limited, was initiated by Vishal Mahajan, the registered owner of vehicle number HP-90-7070, which was insured under a policy effective from August 3, 2024, to August 2, 2025.
On January 12, 2025, the vehicle was involved in an accident near KCC Bank in Barol, with repair costs estimated at ₹3,17,400. The surveyor classified the damage as a “total loss” since the repair expenses surpassed 75% of the vehicle’s Insured Declared Value (IDV) of ₹3.40 lakh.
However, the insurance provider only offered ₹1,83,600, incorrectly applying depreciation on metal and rubber components. The commission determined that depreciation should not be considered in total loss scenarios exceeding 75% of the IDV.
Finding clear negligence on the part of the insurance company, the commission ordered the full IDV payment of ₹3,40,000, plus 9% annual interest. Furthermore, the company is required to pay:
- ₹34,000 for mental and physical distress
- ₹15,000 for litigation expenses
- ₹7,000 for parking fees
The commission also instructed the Regional Licensing Authority (RLA) in Shahpur to revoke the registration of vehicle number HP-90-7070 and directed the insurance company to retrieve the vehicle’s salvage.
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