The Consumer Commission of Karnal District has mandated that an insurance firm compensate a car owner with Rs 60,888 after the company unjustly denied his accident claim. The insurer’s refusal was based on the car being over ten years old, referring to legal stipulations that ban diesel vehicles older than ten years and petrol vehicles older than fifteen years from operating within the National Capital Region (NCR).
A panel consisting of President Jaswant Singh and members Neeru Agarwal and Sarvjeet Kaur also instructed the company to pay Rs 25,000 in compensation and Rs 11,000 in legal expenses. The commission’s ruling emphasized that the insurer could not disclaim liability after having issued the insurance policy.
According to the commission’s findings, “The complainant secured insurance for his vehicle in March 2024. The insurer accepted the premium and issued a policy valid from March 2024 to March 2025, having reviewed the necessary documentation, including the vehicle’s age. Given that the insurer was fully aware of the Supreme Court’s directives, as well as the Delhi government’s circulars, it raises the question of why the policy was issued in the first place,” as stated in the ruling on June 16.
The commission noted a growing trend where insurance companies provide policies with misleading assurances, only to later reject claims with various justifications. It described the denial of the complainant’s claim as arbitrary and unjust.
The complainant drove a 2012 diesel Hyundai Elantra, insured with The New India Assurance Company Limited from March 31, 2024, to March 20, 2025, after paying a premium of Rs 12,000. In June 2024, while driving, he collided with a pole to avoid hitting a motorcyclist, resulting in significant damage to his vehicle.
He subsequently had the car repaired at an authorized Hyundai service center, incurring costs of Rs 2.89 lakh, and submitted the repair invoices to the insurer. However, the insurer denied his claim, citing the vehicle’s age and the violation of Supreme Court and National Green Tribunal regulations that prohibit such diesel vehicles from being used in the NCR.
Feeling aggrieved by the claim rejection, the complainant sought redress from the commission, alleging inadequate service and unfair business practices. He argued that since the insurance company accepted his premium while being aware of the relevant guidelines, they were obligated to honor the claim.
The insurance provider contested the case, raising concerns about the case’s validity, the basis for action, the complainant’s standing, jurisdiction, and claims of undisclosed relevant information. They also argued that the final invoice for the vehicle repair had not been provided.
The insurer reiterated that, based on the National Green Tribunal and Supreme Court rulings, diesel vehicles over ten years old and petrol vehicles over fifteen years old should not be driven. The accident involving the diesel vehicle occurred in June 2024 within the NCR, which clearly contravenes the Supreme Court’s regulations.
This ruling reaffirms that insurers cannot accept premiums for a vehicle after confirming its documentation and later refuse claims based on the vehicle’s age or NCR diesel restrictions. It highlights the necessity for insurers to act justly and not use known regulations as a basis to deny legitimate claims.
Consumers experiencing similar issues can reach out to their state consumer helplines (for Haryana, call 1800-180-2087) or contact the National Consumer Helpline at 1915 for support.
Jagriti Rai is a journalist at The Indian Express, focusing on the intersections of law, gender, and society. She works on a dedicated legal desk, translating complex legal frameworks into accessible narratives and examining how judicial and legislative changes influence citizens’ lives.
Her expertise includes a socio-legal perspective that addresses contemporary social issues, particularly how legal advancements affect gender rights, marginalized groups, and individual freedoms.
With over four years of experience in digital and mainstream journalism, she has honed a versatile reporting style, having previously worked for prominent platforms such as The Lallantop and Dainik Bhaskar, gaining valuable insights into the diverse informational needs of the Indian populace.
Jagriti holds a Post-Graduate degree in Journalism from the Indian Institute of Mass Communication (IIMC), a leading media training institute in India, and a Master of Arts in Ancient History from Banaras Hindu University (BHU), equipping her with the historical context needed to analyze enduring social and legal frameworks.
