Delhi Consumer Commission Orders Insurer to Pay Rs 5.75 Lakh for Burnt Car

Overview

A Delhi consumer commission has directed Bajaj Allianz General Insurance to settle a claim for a Renault Duster that caught fire in 2019. The commission ruled that the insurance provider failed to settle the claim, leading to a legal dispute spanning several years.

Incident Details

In July 2019, owner Pramod Kumar’s Renault Duster caught fire near a petrol pump in Kirti Nagar, Delhi. Despite the vehicle being insured with an Insured Declared Value (IDV) of Rs 5.75 lakh, the insurer refused the claim after receiving the required documentation. The owner then approached the District Consumer Disputes Redressal Commission in Janakpuri.

Commission Findings

In an order dated October 15, 2026, the commission noted that:

• The insurance company failed to appear or present a defense during the proceedings, which were consequently held ex parte.
• A technical report attributed the fire to "arcing formation in non-genuine wiring," ruling out manufacturing defects.
• No deficiency in service was found regarding the manufacturer (Renault Motors) or the service center (NCR Motors India), leading to their exoneration.

Directives

The commission ordered Bajaj Allianz General Insurance to:

• Pay the full IDV of Rs 5.75 lakh.
• Provide Rs 25,000 in compensation for the complainant.
• Cover Rs 10,000 in litigation costs.
• Complete these payments within 30 days of receiving the order.