Car insured for Rs 5L went up in flames in 2019: Panel orders full cover after 7 years

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NEW DELHI: A consumer commission in Delhi has directed Bajaj Allianz General Insurance to pay Rs 5.75 lakh to a car owner whose Renault Duster was completely gutted in a fire, after the insurer refused to settle his claim despite receiving the required documents.

The commission also directed the insurer to pay Rs 25,000 as compensation and Rs 10,000 towards litigation expenses.In its October 15, 2026, order, the District Consumer Disputes Redressal Commission, West District, Janakpuri, held the insurance company liable for failing to settle the claim for the total loss of the insured vehicle. It, however, dismissed the complaint against Renault Motors and NCR Motors India, the authorised service centre.

How did the Renault Duster catch fire?

According to the commission order, Pramod Kumar had purchased a Renault Duster RXL Diesel Plus 110 PS in 2014 and regularly got it serviced. He had insured the vehicle with Bajaj Allianz General Insurance under a policy valid from February 17, 2019, to February 16, 2020. The policy carried an insured declared value (IDV) of Rs 5.75 lakh, for which he paid a premium of Rs 24,132.On July 31, 2019, at around 10.37 pm, Kumar was driving the car home when it caught fire near a petrol pump in Kirti Nagar, Delhi.

He called the police and fire brigade to the spot, but the vehicle was completely gutted.Kumar subsequently filed an insurance claim with Bajaj Allianz. The insurer sought several documents, including his driving licence, police complaint, fire brigade report, vehicle history, technical report from the manufacturer and details of the occupants in the car when the fire broke out.The complainant submitted the documents but the insurer refused to pay the insured amount of Rs 5.75 lakh.

Aggrieved by the rejection, he approached the consumer commission seeking the IDV of the vehicle and Rs 5 lakh in compensation.

What did the commission find?

The bench comprising president Sonica Mehrotra and members Richa Jindal and Anil Koushal noted that the insurer had failed to appear before the commission or file a defence to challenge the complainant's evidence. The proceedings against the opposite parties were conducted ex parte after they failed to appear despite being given opportunities.The commission also took note of a vehicle examination report prepared by Techliner Expertise for Renault India. The report recorded the suspected cause of the fire as “Arcing formation in non-genuine wiring fitting in vehicle”, which led to the melting of surrounding parts and eventually the burning of the entire vehicle. It also ruled out a manufacturing defect."We, therefore, allow the complaint only against OP 2 for non-settlement of accidental claim of insured vehicle of complainant and direct it to pay the IDV of Rs.

5,75,000/- along with compensation of Rs. 25,000/- and Rs. 10,000/- towards litigation charges to the complaianant We exonerate OP 1 and 3 Manufacturer, Authorised Service Centre respectively for no deficiency made out against them," the commission said.The bench observed that the dispute concerned the insurer's failure to pay the claim for the total loss of the insured vehicle. Since Bajaj Allianz had neither appeared nor challenged the complainant's evidence, the commission accepted his case and allowed the complaint against the insurance company.

What did the commission order?

The commission directed Bajaj Allianz General Insurance to:

• Pay Rs 5.75 lakh, the insured declared value (IDV) of the Renault Duster.
• Pay Rs 25,000 as compensation.
• Pay Rs 10,000 towards litigation charges.
• Comply with the order within 30 days of receiving it.

The commission exonerated Renault Motors, the manufacturer, and NCR Motors India, the authorised service centre, as no deficiency in service was established against them.