StateCommission orders New India Assurance to pay ₹5 lakh for flood‑damaged car

Chandigarh – The State Consumer Disputes Redressal Commission has affirmed an order directing New India Assurance Company Ltd to compensate a resident of Chandigarh with ₹5 lakh for the total loss of his insured car caused by the 2023 Punjab floods. The claim arose after the vehicle was submerged during the widespread flooding that affected the region that year.

The insurer had initially denied the claim, contending that the loss fell outside the coverage terms of the policy. A lower consumer forum had earlier directed the company to pay the amount, and the insurer subsequently appealed the decision. The commission reviewed the case, examined the policy documents and the circumstances of the flood, and found no valid basis for the insurer’s refusal.

In its order, the commission stated that the insurer failed to demonstrate that the policy excluded flood‑related damage, and therefore the original directive should remain in force. The decision underscores the importance of policy coverage for natural disaster losses and provides a clear precedent for similar claims across the region.

The resident had approached the consumer forum after the insurer’s denial, seeking redress for the financial loss incurred when the car became inoperable due to water damage. The commission’s directive means the insurer must now fulfill the ₹5 lakh payment as previously ordered, concluding the dispute.

The 2023 Punjab floods caused extensive waterlogging across several districts, leading to significant damage to vehicles, homes and infrastructure. Many affected individuals turned to consumer dispute mechanisms to seek compensation where insurance claims were disputed or delayed. This order reflects the commission’s role in ensuring that policyholders receive the benefits stipulated in their contracts, even in the aftermath of large‑scale natural events.

Source: Hindustan Times