Insurance claims cannot be rejected if the reason for delay in filing it is satisfactorily explained, the Supreme Court has said while granting relief to a man who was denied the claim for his stolen vehicle.
A bench of justices R.K. Agrawal and S. Abdul Nazeer said that rejection of the claims on purely technical grounds in a mechanical manner will result in the “loss of confidence of policy-holders in insurance industry”.
The observations came as the bench allowed the appeal of a man against the ruling of the National Consumer Disputes Redressal Commission (NCDRC) that insurance firms could deny the claim benefit for delay in filing it.
