Mumbai Consumer Commission Orders New India Assurance To Pay ₹5.37 Lakh For Wrongly Rejecting Bariatric Surgery Claim

Mumbai, November 13, 2026: The South Mumbai District Consumer Disputes Redressal Commission (DCDRC) has directed New India Assurance Company Ltd to pay ₹5.60 lakh to a cold-chain logistics company after the insurer wrongly repudiated its claim, amounting to deficiency in service. The insurance firm had rejected the company's claim for damage to a diesel generator set (DG set).

The commission further directed the insurer to pay 9% annual interest on the amount from the date of filing of the complaint in 2021. Additionally, it awarded ₹25,000 as compensation for mental and physical distress and ₹30,000 towards litigation costs.

Generator Damaged Following Power Disruption

The complaint was filed by Blue Ocean Line Pvt Ltd, a Fort-based company that operates in integrated cold-chain logistics and supply chain management. The dispute arose after its DG set at a cold storage facility was damaged on June 2, 2018, following a power disruption.

According to the company, an unusually high-voltage fluctuation from the power supply network entered the cold storage's external electrical wiring, resulting in a flashover and excessive heat near the engine head of the generator. The incident severely damaged the engine and other crucial components, rendering the DG set inoperative.

The company immediately informed the insurer, which appointed SIB Insurance Surveyors and Loss Assessors Pvt Ltd to inspect the damage. However, in its final survey report dated August 21, 2019, the surveyor concluded that the damage was restricted to minor wires and contacts and that the loss had not occurred due to an insured peril.

Relying on the report, the insurer closed the claim as a ‘No Claim’ on September 27, 2019.

Commission Questions Surveyor's Findings

Challenging the repudiation, the company approached the consumer commission, seeking compensation.

The commission, while examining the survey report, observed that the surveyor had not specified which documents were allegedly not submitted by the insured despite claiming to have repeatedly followed up with the company. It also noted that there was no documentary evidence to support this assertion.

The commission further pointed out that the surveyor had recorded that the generator's doors were blackened from inside due to smoke and that its pedestal was covered with oil and water. These observations indicated that the damage could not simply be dismissed as being limited to minor wires and contacts.

Power Disruption Confirmed By Torrent Power

It also relied on a certificate issued by Torrent Power Ltd, which confirmed power disruptions between May 30 and June 3, 2018, including disruptions on June 2, the day of the incident. The company had subsequently spent ₹5.60 lakh on repairs to the generator set.

Observing that the insurer had relied solely on the surveyor's report without providing cogent evidence or a valid justification for rejecting the claim, the commission held that the insurer had committed deficiency in service.

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Referring to the Supreme Court's ruling in National Insurance Company Ltd vs Hareshwar Enterprises Pvt Ltd (2021), the commission reiterated that a surveyor's report is not conclusive and cannot be treated as the final word on an insurance claim.

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