Chennai: Setting aside the denial order passed by HDFC ERGO General Insurance Company rejecting Rs 26.32 lakh claim made by a resident whose car was damaged in the 2017 flashflood, Tamilnadu insurance ombudsman has directed the company to release the claim in 30 days.
The complainant had had his car parked outside his house when it got waterlogged in the November 2017 flashflood. His vehicle was insured with HDFC ERGO through a comprehensive policy.
But when he claimed insurance of Rs 26.32 lakh, the claim was rejected by the company on the ground that damage to engine and related parts were due to hydrostatic lock besides being aggravated damages in nature and the same were not covered under the policy.
The insurer had further said that the complainant didn’t take proper care of the vehicle and the damage didn’t happen while the vehicle was stationary but while in motion. This lack of care aggravated the loss and the same is not covered under the policy, it added.
The ombudsman after recording the submissions said the contention of the insurer that hydrostatic lock is not covered under the insurance police is not sustainable. The insurer had also not submitted any document to prove that the hydrostatic lock occurred due to cranking of the engine.
They also didn’t furnish any report on the dismantled condition of the engine and the extent of damage to prove hydrostatic lock, the ombudsman added and held that the insurer is liable to honour the claim.