The district consumer commission was dealing with a plea of man regarding accident insurance claim. (AI-generated Image)The Karnal District Consumer Commission has directed an insurance company to pay Rs 60,888 to a car owner after it wrongly rejected his accident claim. The insurer had refused the claim because the diesel car was over 10 years old, citing court rulings that prohibit diesel vehicles older than 10 years and petrol vehicles older than 15 years from being driven in the National Capital Region (NCR).A bench of president Jaswant Singh and members Neeru Agarwal and Sarvjeet Kaur also awarded Rs 25,000 compensation and Rs 11,000 litigation costs. The order held that the insurer cannot deny liability after issuing the policy.“The complainant insured his vehicle in March, 2024. The opposite party received the premium amount from the complainant and issued the policy, valid from March, 2024 to March, 2025, after verifying documents and also the age of the vehicle. When the opposite party was fully aware of the guidelines of the Supreme Court, the Delhi government circular, and notifications, then as to why did the company issue the policy in question?” the commission said on June 16.Also Read | Customer orders size 8 shoes online gets size 7, wins consumer payoutThe order highlighted that nowadays, it has become a trend among insurance companies to issue policies by giving false assurances, and when an insured amount is claimed, they make such excuses. Thus, the denial of the claim of the complainant is arbitrary and unjustified, it added.Claim rejected over vehicle ageThe complainant owned a 2012 diesel Hyundai Elantra vehicle that was insured with The New India Assurance Company Limited for the period from March 31, 2024, to March 20, 2025, after paying a premium of Rs 12,000. In June 2024, the complainant was driving his car when he struck a pole installed near an electricity office, and his car was badly damaged, to save the life of a bike rider who came in front of the car.He got the vehicle repaired at an authorized Hyundai workshop, spending Rs 2.89 lakh, and submitted the repair bills to the insurer. However, the insurer rejected the claim, stating that the vehicle was over 10 years old and was being driven in the NCR in violation of the Supreme Court and National Green Tribunal directions banning such diesel vehicles. It said that the diesel vehicles that are more than 10 years old and petrol vehicles more than 15 years old are still not allowed on the road.Dissatisfied with the repudiation, the complainant approached the commission alleging deficiency in service and unfair trade practice. The complainant contended that when the Insurance company was fully aware of the guidelines of the Supreme Court, and if they were receiving the premium amount, they had to pass the claim and to disburse the claim amount.Story continues below this adClaim rejected over banThe insurance company raised objections about maintainability, cause of action, locus standi, jurisdiction, and concealment of true and material facts. It was pleaded that the complainant had not provided the final invoice for the accident vehicle.It was argued that, according to the National Green Tribunal and Supreme Court Verdict, diesel vehicle which are more than 10 years old and petrol vehicles more than 15 years old should not ply on the road. The vehicle fuel type is diesel, and the said vehicle met with an accident in June, 2024, which falls under the NCR region, which is a clear-cut violation of Supreme Court guidelines.Deficiency in service and unfair: OrderThe opposite party has alleged that the accident took place in June, 2024, and the model of the vehicle in question is 2012.According to the National Green Tribunal and Supreme Court verdict, diesel vehicle which are more than 10 years old and petrol vehicles more than 15 years old are not allowed to ply on the roads.The opposition party has relied upon the circular issued by the government of the NCT of Delhi Transport in 2021.According to the circular and public notices, all the diesel vehicles that are more than 10 years old and petrol vehicles more than 15 years old shall not ply in the NCR.Keeping in view the facts and circumstances of the present complaint, the act of the opposite party amounts to deficiency in service and unfair trade practice.Also Read | Full loan repaid, yet CIBIL not updated, bank ordered to pay customer Rs 20,000TakeawayThis judgment reinforces that an insurer cannot accept premiums for a vehicle after verifying its documents and later reject an accident claim by citing the vehicle’s age or NCR diesel restrictions. It underscores that insurers must act fairly and cannot rely on grounds known to them when issuing the policy to deny genuine claims.Consumers facing similar grievances may contact the consumer helpline in their respective states (Haryana helpline: 1800-180-2087) or dial the National Consumer Helpline at 1915 for assistance.Jagriti Rai works with The Indian Express, where she writes from the vital intersection of law, gender, and society. Working on a dedicated legal desk, she focuses on translating complex legal frameworks into relatable narratives, exploring how the judiciary and legislative shifts empower and shape the consciousness of citizens in their daily lives. Expertise Socio-Legal Specialization: Jagriti brings a critical, human-centric perspective to modern social debates. Her work focuses on how legal developments impact gender rights, marginalized communities, and individual liberties. Diverse Editorial Background: With over 4 years of experience in digital and mainstream media, she has developed a versatile reporting style. Her previous tenures at high-traffic platforms like The Lallantop and Dainik Bhaskar provided her with deep insights into the information needs of a diverse Indian audience. Academic Foundations: Post-Graduate in Journalism from the Indian Institute of Mass Communication (IIMC), India’s premier media training institute. Master of Arts in Ancient History from Banaras Hindu University (BHU), providing her with the historical and cultural context necessary to analyze long-standing social structures and legal evolutions. ... Read More Tags:Delhi diesel bandiesel vehicle