Supreme Court Reverses NCDRC's Insurance Reduction

The Supreme Court overturned an NCDRC order that had reduced an insurance claim from Rs 5.02 lakh to Rs 53,543 for an accident in 2013. The court affirmed that the insured acted reasonably and directed the release of the full insured amount as ruled by the state consumer commission.

In a significant verdict, the Supreme Court has set aside an earlier decision by the National Consumer Disputes Redressal Commission (NCDRC) that had reduced an insurance payout dramatically. The Supreme Court's ruling restores the original insured amount to Rs 5.02 lakh for a vehicular accident that occurred in 2013.

Justices P S Narasimha and Sandeep Mehta observed that the NCDRC relied on a policy condition requiring that an unattended vehicle be safeguarded. However, the bench concluded that the insured had taken reasonable care under compelling circumstances and properly lodged a timely complaint.

The case centered around the appellant's vehicle, which suffered extensive damage after an accident and subsequent fire. The appellant had, under exigent circumstances, prioritized the co-passenger's wellbeing by taking him to a hospital. The Supreme Court restored the state consumer commission's judgment, awarding the full insurance claim.

(With inputs from agencies.)