Consumer forum orders insurance company to reimburse stolen money

Consumer forum orders insurance company to reimburse stolen money

Mangalore Today News Network

Mangaluru, June 13, 2019 : The Dakshina Kannada District Consumer Disputes Redressal Forum has directed the United India Insurance Company Limited (UIICL) to reimburse the amount stolen from Mangaluru Yanthrika Meenugarara Sabha, Bunder.

The Forum has demanded that the UIICL reimburse the amount of Rs 6,96,800 plus an interest of 9% per annum.

In March 2015, two junior clerks from the Sangha had encashed cheques of Rs 6,96,800 from Canara Bank and kept the cash in the boot of their scooter. On returning from a visit to a hotel, they were shocked to find the lock of the vehicle broken and the cash in the boot missing. They informed the Sangha and also filed a complaint with Mangaluru South police.

The Sangha, which markets fish caught by members, had obtained an insurance of Rs 50 lakh against such losses. On being informed of the matter by the clerks, the Sangha submitted a claim with the insurance firm. Following a delay in settling the claim, the Sangha filed a complaint against the UIICL with the district consumer court, accusing the company of deficiency in services under Section 12 of the Consumer Protection Act.

The UIICL argued that the Sangha’s staff had stepped into a bar, leaving the vehicle unattended to, which was a violation of the company’s policy. The money withdrawn from the bank did not belong to the Sangha.

Vishweshwara Bhat D, president of the Forum, who heard the arguments and counter arguments, pointed out that the vehicle could not be declared unattended to, given the time of theft. Also, as the money had not been disbursed to members, it remained as property of the Sangha.

He declared that the firm could not escape liability and should reimburse the stolen money to the Sangha.

The Forum ordered the opposite party to pay a compensation of Rs 20,000 and an additional Rs 10,000 as litigation expenses.