In a significant ruling, the Supreme Court of India has clarified the criteria for insurance claims arising from theft incidents. The Court, comprising Justices J.K. Maheshwari and K.V. Viswanathan, underscored that while prompt reporting of theft to the police is crucial, delays in submitting insurance claims cannot be the sole reason for claim denial.

The case, titled "Trilok Singh v. Manager, Cholamandalam MS General Insurance Co. Ltd. & Ors." (Civil Appeal No. 4530 of 2023), revolved around the theft of a vehicle insured by Cholamandalam MS General Insurance Co. Ltd. The appellant, Trilok Singh, had timely informed the local police about the theft but faced a setback when the insurance company repudiated his claim. The insurance company argued that the claim violated certain policy conditions, notably the requirement for immediate written notice of theft to the company.

The Supreme Court's verdict drew from previous judgments, particularly the findings in "Gurshinder Singh v. Shriram General Insurance Co. Ltd., (2020) 11 SCC 612." This ruling established that when an insured party promptly files a First Information Report (FIR) after a theft, and subsequent investigation supports the legitimacy of the claim, any delay in notifying the insurance company should not warrant claim denial. The same principle was upheld in "Jaina Construction Company v. Oriental Insurance Company Limited and Another (2022) 4 SCC 527."

The Court's decision emphasized that quick action in notifying the police about a theft, even if followed by a slight delay in submitting an insurance claim, should not result in repudiation based on belated information. The judgment overruled the National Consumer Disputes Redressal Commission (NCDRC) and State Consumer Disputes Redressal Commission (SCDRC) orders, reinstating the District Forum's decision. Consequently, the appellant, Trilok Singh, was granted compensation of Rs. 5,50,000/- with an interest rate of 9% per annum.

Legal representation in the case was led by advocates Anand Shankar Jha, Meenakshi Devgan, Abhilekh Tiwari, Sachin Mintri for the appellant, and Viresh B. Saharya, Abhishek Gola, and Akshat Agarwal for the respondents.

This verdict not only reaffirms the significance of immediate reporting of thefts to the police but also underscores that insurance claims should be evaluated more holistically, taking into account the efforts of the insured to cooperate with law enforcement and provide requisite documentation.

Case Title: "Trilok Singh v. Manager, Cholamandalam MS General Insurance Co. Ltd. & Ors." | (Civil Appeal No. 4530 of 2023)

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