A Delhi Consumer Commission has directed an insurance company to pay Rs 7.74 lakh to a car owner whose vehicle was stolen, rejecting the insurer’s grounds that the car’s high mileage suggested commercial use and that parking it 500 metres from home amounted to negligence. The commission held that such allegations could not justify rejection of a theft claim without “cogent and reliable” evidence and also awarded Rs 30,000 for mental agony and litigation expenses.The District Consumer Disputes Redressal Commission-I, North District, Delhi, comprising president Divya Jyoti Jaipuriar and members Harpreet Kaur Charya and Ashwani Kumar Mehta, heard a complaint by Naseem Ali against United India Insurance Company Private Limited.“The rejection of the claim on baseless and arbitrary grounds without any substantial evidence amounts to deficiency in service and unfair trade practice,” the commission said on September 14, adding that the insurer’s action had caused mental agony and harassment to the complainant.The dispute arose after Ali’s car was stolen in February 2020. The vehicle was insured for an insured declared value (IDV) of Rs 7,74,005 under a policy valid from December 21, 2019 to December 20, 2020, against a premium of Rs 34,004.Car stolen after being parked overnightAccording to the complaint, Ali parked the vehicle on the evening of February 3, 2020. His driver found it missing the following morning. The complainant later found a Paytm toll deduction indicating the vehicle crossed the Shambhu Border in the Ambala area around 2.17 am on February 4, 2020.A theft report was lodged with the police that morning. An untraced report was subsequently submitted before the concerned court on August 20, 2020. Ali said he supplied the insurer with the insurance policy, registration certificate, driving licence, FIR and untraced report.The insurer rejected the claim, alleging that the vehicle was being used commercially despite being insured as a private vehicle. It also alleged that Ali had failed to take reasonable steps to safeguard the car because it had been parked around 500 metres from his residence.Story continues below this adThe insurer relied on the vehicle’s mileage to support its commercial-use allegation. It said the car had travelled approximately 6,500 km within two months of purchase, with the meter showing 1,984 km at its first service and 6,114 km at its second service.It also relied on toll information and claimed that the car had travelled through Haryana, Punjab, Rajasthan and Uttarakhand.The commission rejected the contention that high mileage established commercial use. “Mere high mileage, by itself, neither establishes nor even reasonably proves that the vehicle was being used for a commercial purpose,” it said. The commission noted that the insurer had not produced documentary evidence, independent material or substantive proof showing that the car was being used for hire, reward or commercial activity.Parking 500 metres away not negligenceThe commission also found inconsistencies in the insurer’s reliance on FASTag information. While the insurer’s counsel said the details had been furnished by the investigator, the repudiation letter stated that they had been provided by the complainant. The commission said the insurer had not satisfactorily explained the contradiction.On the parking issue, the commission noted that the insurer had not alleged that the vehicle was left unlocked or that ordinary precautions had not been taken. Merely parking the car 500 metres from the residence could not, by itself, establish negligence without evidence showing disregard for its security. It also said the investigation report, which could have supported the insurer’s claim about where the car was parked, had not been duly proved. The allegation therefore remained unsubstantiated.Story continues below this adThe commission directed the insurer to pay Rs 7,74,005 with 7 per cent annual interest from April 13, 2022, the date of filing of the complaint, until realization. It also awarded Rs 30,000 for harassment and mental agony, inclusive of litigation expenses.TakeawayAn insurer cannot reject a genuine theft claim merely on assumptions such as high vehicle mileage or the distance at which the car was parked. If such grounds are cited, the insurer must support them with cogent and reliable evidence.For consumer-related grievances, individuals may contact the consumer helpline in their respective states (Delhi: 1800-11-4000) or call the National Consumer Helpline at 1915 for assistance.Do not miss out on these stories:Implants ‘broke’ thrice after procedure, Punjab dentist to pay UK citizen Rs 79,000Story continues below this adTV damaged ‘during shifting’, Delhi man wins Rs 50,000 payout from packers and moversRailways to pay Rs 47,000 fine 8 years after family ‘robbed’ in Mewar Express AC coach