The Ranga Reddy District Consumer Disputes Redressal Commission has directed United India Insurance Company to pay over Rs 7 lakh for battery replacement along with compensation and interest to a vehicle owner. The insurance firm was found guilty of deficient service after rejecting a claim related to flood damage sustained by an electric vehicle during heavy rains in Hyderabad.
The case involves a Tata Nexon EV XZ+ Dark Edition owned by CBS Agencies, a partnership firm based in Dilsukhnagar. The electric vehicle had been in use since February 10, 2022. In April 2023, the firm obtained a Standalone Own Damage private car insurance policy valued at Rs 13.84 lakh from United India Insurance Company to protect the vehicle.
During heavy rainfall at the end of April 2023, the car was parked at the complainant’s residence when it became submerged in floodwater. The submersion resulted in serious damage to the vehicle’s critical components. On May 4, 2023, the damaged vehicle was transported to Tejaswi Automobiles, an authorised service centre for assessment and repairs.
The service centre conducted a thorough inspection and provided an estimate of Rs 20,000 for ABS controller replacement. Additionally, after detecting water ingress, the centre estimated Rs 7,07,589.75 for complete battery pack replacement. The complainant promptly submitted an insurance claim for the damages, expecting coverage under the comprehensive policy.
However, the insurer rejected the claim on July 31, 2023, stating that the damages were “not consistent with accident-related causes.” The complainant alleged that the surveyor appointed by the insurance company failed to conduct a proper and thorough assessment of the flood-damaged vehicle. Even after the matter was escalated to the IRDAI grievance cell, no relief was provided to the vehicle owner.
Following the rejection, Santosh Dayanand, the Managing Partner of CBS Agencies, filed a complaint before the Rangareddy District Consumer Commission on December 28, 2023. The complainant sought compensation exceeding Rs 17 lakh, which included costs for battery replacement, ABS repairs, parking charges, rental car expenses, business losses, and compensation for mental agony caused by the prolonged dispute.
After examining all evidence and arguments, the Commission made several critical observations. The panel noted that the insurance policy did not specifically exclude flood or rainwater damage from coverage. The Commission also found that the surveyor rejected the claim without conducting a proper assessment, and that the straightforward denial of the claim amounted to deficiency in service. However, claims related to parking charges, hired vehicle expenses, and business losses were rejected due to lack of proper documentary evidence, as they were supported only by diary entries.
The Commission directed the insurance company to pay Rs 7,07,589.75 towards battery replacement, along with 9% annual interest on the amount from the date of filing the complaint until full payment. The insurer must also pay Rs 20,000 towards service charges and Rs 50,000 as compensation for mental agony. The total amount must be paid within 45 days, the Commission ordered.
