Chhattisgarh State Commission Orders Cholamandalam Insurance to Pay ₹23.49 Lakh for Truck Fire Claim

News Citation : 2026 LN (CGSCDRC) 23

March 05, 2026 : The Chhattisgarh State Consumer Disputes Redressal Commission at Raipur has partly allowed an appeal filed by Cholamandalam MS General Insurance Company Ltd. while modifying a district commission order directing payment of insurance compensation to the owner of a truck that was destroyed in a fire.

The case, Appeal No. SC/22/FA/431/2025, Cholamandalam MS General Insurance Co. Ltd. vs. Lilesh Kumar Dote, was decided on March 5, 2026 by a bench comprising Justice Gautam Chourdiya (President) and Pramod Kumar Verma (Member).

The dispute arose after a truck owned by Lilesh Kumar Dote, bearing registration number CG-04/NN/2752, was insured under a commercial vehicle package policy issued by the insurance company for the period from October 15, 2022 to October 14, 2023 with an insured declared value (IDV) of ₹23.59 lakh.

According to the complaint, the truck was returning to Raipur from Cuttack after unloading goods when it suddenly caught fire around 5:30 AM on June 29, 2023 near Mandir Hasaud. Despite efforts to extinguish the blaze, the vehicle was completely destroyed. The owner promptly informed the police and submitted an insurance claim to the company.

However, the insurance company rejected the claim on October 30, 2023. It relied on an investigation report suggesting that two additional flash lights had been fitted in the vehicle which were not part of the manufacturer’s specifications. According to the insurer, these non-OEM fittings increased the risk of overheating and electrical short circuits, and therefore the fire resulted from an electrical breakdown excluded under the policy conditions.

Challenging the repudiation, the vehicle owner approached the District Consumer Commission in Dhamtari. The district commission partly allowed the complaint and directed the insurer to pay the insured value of the vehicle along with interest and compensation for mental harassment and litigation costs.

The insurance company then filed an appeal before the state commission arguing that the fire occurred due to electrical failure caused by non-standard fittings installed by the vehicle owner, which amounted to violation of policy conditions. It also relied on a forensic examination and investigation report to support its stand.

After examining the records, the state commission observed that although the insurer relied on investigation findings, it failed to properly submit key survey and investigation reports before the district commission in a timely manner. The commission noted that the final survey report and other documents relied upon by the insurer were either delayed or lacked proper authentication, raising doubts about their reliability.

The commission concluded that the fire incident during the policy period was not adequately disproved by the insurer. As a result, the repudiation of the claim amounted to deficiency in service under the Consumer Protection Act.

While upholding the consumer’s entitlement to insurance compensation, the state commission modified certain aspects of the district commission’s order. It directed the insurance company to pay ₹23,49,000 to the vehicle owner after deducting ₹1,000 as compulsory policy excess from the insured declared value. The amount will carry interest at 6% per annum from August 14, 2024 until payment.

The commission also ordered the insurer to pay ₹20,000 as compensation for mental harassment and ₹10,000 towards litigation expenses. Once the payment is made, the salvage of the damaged vehicle will belong to the insurance company, and the owner must cooperate in transferring it.

Accordingly, the appeal was partly allowed, with the order of the district commission modified to the extent of compensation and procedural directions.

Case Reference : Appeal No. SC/22/FA/431/2025; Cholamandalam Ms General Insurance Co. Ltd. Vs. Lilesh Kumar Dote