Car Theft: 3-Day Delay in Filing FIR Does Not Prevent Insurance Payout of ₹4.68 Lakh

In Ghaziabad, an insurance claim was initially rejected due to a delay in filing an FIR and notifying the insurance company following a car theft. The Consumer Commission, deeming this rejection unfair, ordered the insurance company to pay ₹4.68 lakh, providing relief to the car owner.

For a vehicle owner, having insurance coverage in the event of a car theft offers significant relief. But what happens if there is a delay in filing an FIR with the police—can the insurance company refuse to honor the claim? A Consumer Commission in Delhi has delivered a crucial verdict in one such case, ordering National Insurance Company to pay a total of ₹4.68 lakh to a car owner. The incident dates back to December 26, 2019, when a car was stolen from Pratap Vihar in Ghaziabad, Uttar Pradesh.

According to the car owner, he visited the police station to lodge a complaint on the very day of the incident. However, the police registered an FIR three days later, on December 29. The police were subsequently unable to locate the vehicle, and upon the conclusion of the investigation, a final report was submitted to the court. When the car owner sought compensation from the insurance company, the claim was rejected.

Commission Rules Delay Is Not Grounds for Claim Rejection

In a ruling issued on September 25, the East Delhi District Consumer Disputes Redressal Commission rejected the insurance company’s argument. The Commission stated that it is unjust to entirely dismiss a genuine claim solely due to a delay of a few days. The company’s stance in this matter was deemed a "deficiency in service."

The Commission directed the insurance company to pay ₹4.31 lakh (the insured value of the car), ₹25,000 for mental agony, and ₹12,500 toward legal expenses—bringing the total payout to ₹4.68 lakh.

Why did the insurance company reject the claim?

The insurance company stated that, according to the terms and conditions of the policy, it was mandatory to report the theft in a timely manner. The company noted that there was a delay in both filing an FIR with the police and notifying the insurance company. The theft was reported to the insurance company on January 2, 2020.

Citing this delay, the company refused to honor the claim. Following this, the car owner approached the Consumer Commission, seeking compensation.

What is the lesson for vehicle owners?

In the event of a car or motorcycle theft, it is essential to inform the police and the insurance company as soon as possible. Keep copies of your complaint, the FIR, your insurance policy, and other relevant documents in a safe place. If a claim is rejected, request the reasons for the rejection in writing and, if necessary, file a complaint with the Consumer Commission. However, the outcome of each case depends on its specific facts and the evidence available.