In Brief
A truck owner's insurance claim for a stolen vehicle was rejected by Reliance General Insurance on technical grounds—an 8-day delay in notifying the theft, violating the policy's immediate-notification condition. Though the insurer's own investigator verified the theft as genuine and approved Rs. 7,85,000, the claim was repudiated. Consumer forums dismissed the complaint. The Supreme Court held that genuine verified claims cannot be rejected on technical grounds when delay is reasonably explained. The Court allowed the appeal, directing payment of Rs. 8,35,000 plus interest and Rs. 50,000 compensation, emphasizing that consumer protection legislation requires liberal construction and that policyholders' confidence depends on fair treatment of verified claims.
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