News Citation : 2026 LN (CGSCDRC) 3
January 13, 2026 : In a significant order, the Chhattisgarh State Consumer Disputes Redressal Commission, Raipur, has partly allowed an appeal filed by the family of a deceased policyholder against Tata A.I.G. General Insurance Co. and another respondent, setting aside a district commission’s earlier dismissal of their complaint.
The case, titled Khistodhani & Others vs Tata A.I.G. General Insurance Co. & Anr., arose from the death of Chetan Singh Thakur in a road accident on November 9, 2019. Thakur was riding his motorcycle when the accident occurred around 10:30 pm. He later succumbed to his injuries. The vehicle was insured under Policy No. 0146609903, valid from May 10, 2018 to May 9, 2021.
Dispute Over Insurance Claim
Following the accident, the deceased’s wife and children approached the insurer seeking compensation under both the motor insurance and personal accident cover. According to the record, the insured declared value of the vehicle reduced over the policy period, and the policy also included a personal accident cover of Rs 1 lakh for the owner-driver.
However, the claim ran into procedural hurdles. The insurance company argued that the complainants had not submitted the claim in the prescribed format and had failed to provide timely intimation. It also contended that the personal accident cover was limited to Rs 1 lakh, disputing the family’s assertion of a higher coverage amount.
The dealer, arrayed as the second respondent, maintained that claim processing fell within the insurer’s domain.
The District Consumer Commission in Bastar had earlier dismissed the complaint in August 2024. Challenging that order, the family approached the State Commission under Section 41 of the Consumer Protection Act, 2019.
State Commission’s Findings
After examining the pleadings and documents, the State Commission noted that certain key aspects had not been properly addressed by the district forum. Importantly, the policy named Manisha Thakur, daughter of the deceased, as the nominee. Yet she had not been impleaded as a party in the complaint.
The Commission observed that the claim had not been finally adjudicated on merits by the insurer, partly due to procedural lapses, including non-submission of the prescribed claim form at the correct address.
Holding that the complaint had been dismissed without granting proper opportunity to rectify these deficiencies, the State Commission set aside the district order and remanded the matter for fresh consideration.
Directions Issued
The Commission directed the complainants to: Implead the nominee, Manisha Thakur, as a party in the complaint. and Submit the prescribed claim form along with all required documents once provided by the insurer.
It further directed the insurance company to decide the claim on merits within 15 days of receipt of the complete claim form and to inform the District Commission accordingly.
Both parties have been instructed to appear before the District Commission on February 13, 2026. The appeal was partly allowed, with each side directed to bear its own costs.
Case Reference : Appeal No. SC/22/FA/629/2024, Khistodhani & Others vs. Tata A.I.G. General Insurance Co. & Another
