Mukul Anand (AM) 23 March 2011

Stolen car usd in crime in Naxal area, we want insurance amt

Dear All,

One of my relative's brand new car was stolen from Chandigarh. The insurance co was informed but rejected the claim as the regn no was showing as recovered in NCRB. Later it was found to be an error.

Now after three months, the car has been found in a Naxal hit area of AP. It has bullet holes in it, and was persumably being used by some criminal elements. The car has been attatched as a case property in the local court in criminal case u/s IPC 307 against the said criminals.

What should we do now, We want insurance company to give us the insured amount as total loss.

Pls help. Cite some case laws where we can look for guidence

Thanx

Reply Follow

1 Replies

LEKH RAJ MEHTA (Advocate) 27 March 2011

As far as use of car by some criminals is concerned, it has no effect on your claim. Because your cause of action arises on the theft of car. So you are very much entitled to the damages.

However, the total loss claim shall depend upon the Surveyor's Report. The basic principle of insurance is indemnification. Your are entitled to the indemnification of your loss. You can not make fortunes out of misfortunes.

You simply lodge a claim with the company. It is the discretion of the company either to replace the vehicle or to get it repaired depending upon the extent of loss caused to the car.

1 Like