Hyderabad: United India Insurance asked to pay Rs 7L for rejecting claim about Tata Nexon EV battery replacement

Hyderabad: Ranga Reddy District Consumer Disputes Redressal Commission has directed the United India Insurance Company (UIIC) to pay over Rs 7 lakh for battery replacement, along with compensation and interest to the complainant.

The panel has found the company guilty of deficient service for rejecting a claim related to flood damage to an electric vehicle.

It also directed the insurance company to pay over Rs 7 lakh towards battery replacement, along with compensation and interest to the complainant.

Flood damage to EV battery

The case pertains to a Tata Nexon EV owned by CBS Agencies, a partnership firm based in Dilsukhnagar. The electric vehicle (Nexon EV XZ+ Dark Edition) has been in use since February 10, 2022.

In April 2023, the firm had taken a Standalone Own Damage private car insurance policy worth Rs 13.84 lakh from United India Insurance Company.

During heavy rains at the end of April 2023, the car, which was parked at the complainant’s residence, got submerged in floodwater, resulting in serious damage.

Service centre estimate and claim rejection

On May 4, 2023, the vehicle was shifted to Tejaswi Automobiles, an authorised service centre. The service centre estimated Rs 20,000 for ABS controller replacement, and Rs 7,07,589.75 for complete battery pack replacement after water ingress was detected.

Despite submitting an insurance claim, the insurer rejected it on July 31, 2023, stating that the damages were “not consistent with accident-related causes.” The complainant alleged that the surveyor failed to conduct a proper assessment.

Even after approaching the IRDAI grievance cell, no relief was provided.

Complaint before Consumer Commission

Following this, CBS Agencies’ Managing Partner Santosh Dayanand filed a complaint before the Rangareddy District Consumer Commission on December 28, 2023.

The complainant sought compensation exceeding Rs 17 lakh, covering battery replacement, ABS repairs, parking charges, rental car expenses, business losses, and mental agony.

Commission’s Observations

After examining the case, the Commission observed that:

The insurance policy did not exclude flood or rainwater damage

The surveyor rejected the claim without a proper assessment

Straightaway denial of the claim amounted to deficiency in service

However, claims related to parking charges, hired vehicle expenses, and business losses were rejected due to a lack of documentary evidence, as they were supported only by diary entries.

Final Order

The Commission directed the insurance company to:

Pay Rs 7,07,589.75 towards battery replacement.

Pay 9% annual interest on the amount from the date of filing the complaint until realisation.

Pay Rs 20,000 towards service charges.

Pay Rs 50,000 as compensation for mental agony.

The total amount must be paid within 45 days, the Commission ordered.