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

By · Via Times of India · Published by Everything Blog

In short

The Janakpuri consumer commission directed Bajaj Allianz General Insurance to disburse Rs 5.75 lakh alongside compensation and litigation costs to car owner Pramod Kumar. Kumar's Renault Duster was destroyed by fire near a Delhi petrol pump, yet the insurer refused settlement despite receiving official police, fire, and technical documentation. Because an inspection attributed the blaze to wiring arcing rather than manufacturing defects, claims against Renault Motors and its service partner were dismissed. The judgment was delivered ex parte after Bajaj Allianz failed to appear before the bench to defend itself.

Key points

  • Bajaj Allianz must fulfill all ordered payments within 30 days of receiving the commissio…: Bajaj Allianz must fulfill all ordered payments within 30 days of receiving the commission's directive.
  • The commission heard the case ex parte after the insurance company failed to appear or pr…: The commission heard the case ex parte after the insurance company failed to appear or present any legal defence.
  • Technical examinations determined that arcing from non-genuine wiring was the suspected s…: Technical examinations determined that arcing from non-genuine wiring was the suspected source of the vehicle fire.

Sources checked by our analysis pipeline: 1

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…

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