News Citation : 2026 LN (CGSCDRC) 10
February 11, 2026 : The Chhattisgarh State Consumer Disputes Redressal Commission has partly allowed an appeal filed by National Insurance Company Ltd., modifying a district commission order in a motor insurance claim dispute with a Rajnandgaon resident.
In its order dated February 10, 2026, in Appeal No. SC/22/FA/322/2025, the State Commission in Raipur examined a challenge by National Insurance Co. Ltd. against a decision of the District Consumer Commission, Rajnandgaon, which had earlier directed the insurer to pay over Rs 1.14 lakh towards vehicle repair costs along with interest and compensation.
The case arose from a complaint filed by Gopal Sahu, owner of a goods carrier vehicle bearing registration number CG-07-VY-7679. The vehicle was insured with National Insurance for the period November 1, 2023 to October 30, 2024, with an insured declared value of Rs 7 lakh.
On May 12, 2024, while Sahu was driving from Narayanpur to Rajnandgaon, the vehicle met with an accident near Antagarh after being allegedly blinded by the headlights of an oncoming vehicle. According to the complaint, several parts of the vehicle, including the headlight assembly, chassis components, radiator and other fittings, were damaged. The vehicle was taken to a workshop the next day for repairs, and the total repair expenditure was claimed to be around Rs 3 lakh.
Sahu submitted a claim to the insurer along with supporting documents. However, on August 27, 2024, the insurance company credited only Rs 71,450 to his bank account through RTGS. The insurer relied on a surveyor’s report assessing the loss at Rs 90,938, but deducted 25 percent on the ground that immediate intimation was not given and a spot survey could not be conducted.
Alleging deficiency in service, Sahu approached the District Consumer Commission. In its April 21, 2025 order, the District Commission directed the insurer to pay Rs 1,14,397 as the balance repair amount, along with interest and additional compensation.
Challenging this decision, the insurer argued before the State Commission that the surveyor had lawfully assessed the loss at Rs 90,938 and that, due to delayed intimation and removal of the vehicle from the accident site, a spot survey was not possible. It contended that after applying a 25 percent deduction in accordance with internal guidelines, Rs 71,450 was rightly paid in full and final settlement.
The State Commission, after examining the records, found that the accident occurred in a Naxal-affected area and that the complainant had shifted the damaged vehicle from the spot to a workshop for safety reasons. The Commission observed that the insurer had been informed the very next day. It held that merely because the vehicle was removed from the site, it could not be concluded that there was any deliberate violation of policy terms.
However, the Commission also noted that the District Commission erred in awarding Rs 1,14,397 based on repair estimates instead of the surveyor’s assessed loss. It held that the complainant was legally entitled to the full amount assessed by the surveyor, that is Rs 90,938, and that the 25 percent deduction was unjustified.
Accordingly, the State Commission modified the earlier order and directed National Insurance Co. Ltd. to pay Rs 90,938 to the complainant along with 7 percent annual interest from November 14, 2024, the date of filing of the complaint, until realization. It also awarded Rs 20,000 towards physical, mental and financial hardship and Rs 10,000 as litigation costs.
With this modification, the appeal was partly allowed and the District Commission’s order was set aside to the extent of the enhanced repair award.
Case Reference : Appeal No. SC/22/FA/322/2025; National Insurance Co. Ltd. vs. Gopal Sahu
