In an important relief for consumers, the Karnataka State Consumer Disputes Redressal Commission in Bengaluru has refused to interfere with an order that allowed a delayed insurance complaint to be heard on merits. The Commission dismissed the appeal filed by SBI General Insurance Company Limited and upheld the District Commission’s decision to condone a delay of more than seven years in a motor insurance claim case.
The case was heard by the State Commission bench led by President Ravishankar and Member Sunita C. Bagewadi. The dispute relates to an own-damage claim for a Ford Figo car owned by Kavita, a government employee. The vehicle was insured with SBI General Insurance Company during the relevant period. After the car was damaged, the complainant filed a claim, but it was neither settled nor clearly rejected by the insurer.
Due to the delay in settlement, the matter was taken to the Permanent Lok Adalat in 2016. However, the issue remained unresolved. In September 2018, the Lok Adalat allowed the complainant to withdraw the case and gave her the freedom to approach the appropriate forum. Later, in June 2024, she filed a complaint before the District Consumer Commission in Belgaum along with a request to condone the long delay.
The District Commission accepted her explanation and allowed the complaint to proceed. Challenging this, the insurance company approached the State Commission, arguing that the delay of 7 years and 28 days was condoned without proper reasons and that the legal time limit of two years under the Consumer Protection Act was ignored.
After examining the records and the affidavit filed by the complainant, the State Commission noted that she had been actively pursuing her claim before the Lok Adalat and was also affected by the COVID-19 period, during which limitation timelines were relaxed. The Commission found the reasons for delay genuine and observed that there was no false or misleading claim made by the complainant.
The Commission also pointed out that the insurance company failed to clearly explain why the claim was never settled or officially rejected. Considering all factors, the State Commission agreed with the District Commission that the delay was properly explained and deserved to be condoned so the case could be decided on merits.
As a result, the appeal was dismissed, and the District Consumer Commission was directed to hear the case expeditiously, giving both parties a fair chance to present their evidence and documents.
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