The Thiruvananthapuram District Consumer Commission has directed United India Insurance Company to pay ₹1 lakh for a damaged television, along with ₹25,000 as compensation and ₹3,000 towards legal costs, taking the total amount to ₹1.28 lakh.
The case was filed by Francis Jacob Tharakan, who had purchased a Sony Bravia LCD television from Qatar in December 2006 and brought it to Thiruvananthapuram in March 2009. He subsequently insured the television under a householder’s policy with a ₹2 lakh sum insured, renewing the policy annually until 2015.
After the television developed faults in October 2015, a service centre determined that it was not economical to repair. United India Insurance accepted the claim as a total loss but offered only ₹38,000, based on a surveyor’s assessment of an ₹80,000 market value, followed by 50% depreciation and a ₹2,000 excess deduction.
The policyholder argued that the policy permitted depreciation of 10% per year, subject to a maximum of 50% of the sum insured, making him eligible for at least ₹1 lakh.
The commission found that the surveyor had assumed the television’s ₹80,000 value without supporting evidence such as a quotation or invoice and had applied the wrong policy clause. It also noted that a surveyor’s report is not final or binding.
The commission held the insurer responsible for deficiency in service and unfair trade practice, directing it to pay the additional amount to the complainant.
The case highlights the importance of accurate claims assessment, policy interpretation and surveyor accountability. It also reinforces that surveyor assessments must be supported by evidence and applied consistently with the actual terms of the insurance contract.
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