Case Note & Summary
The case involves a second appeal before the National Consumer Disputes Redressal Commission (NCDRC) filed by Reliance General Insurance Co. Ltd. (the appellant) against an order of the State Consumer Disputes Redressal Commission, Chandigarh, dated 10.12.2024 in First Appeal No. A/776/2023. The appellant was the third opposite party before the District Forum, where they were placed ex-parte and never informed of the orders passed. The appellant's counsel, Ms. Akansha Singh, argued that no insurance policy was ever issued by the appellant to the complainant, and therefore the appellant had no liability. The NCDRC, after hearing the counsel, allowed the appeal, setting aside the impugned order and the order of the District Forum against the appellant. The Commission noted that the appellant was never informed of the proceedings and that no policy was ever issued, thus the appellant could not be held liable. The appeal was allowed with no order as to costs.
Headnote
A) Consumer Law - Insurance - Liability of Insurer - No Policy Issued - The appellant insurance company contended that no insurance policy was ever issued to the complainant, and thus they had no liability. The Commission allowed the appeal, setting aside the orders of the lower fora, as the appellant was placed ex-parte and never informed of the proceedings. Held that the appellant cannot be held liable in the absence of a policy (Paras 1-3).
Issue of Consideration
Whether the appellant insurance company is liable when no insurance policy was ever issued to the complainant, and whether the appeal should be allowed after being placed ex-parte before the District Forum.
Final Decision
The Commission allowed the appeal, setting aside the impugned order dated 10.12.2024 of the State Consumer Disputes Redressal Commission, Chandigarh, and the order of the District Forum against the appellant. No order as to costs.
Law Points
- Consumer law
- Insurance law
- Ex-parte proceedings
- Delay condonation
- Liability of insurer
Case Details
2025 LawText (NCDRC) (01) 18
Second Appeal No.177 of 2025
Ms. Akansha Singh, Ms. Meenakshi Yadav
Reliance General Insurance Co. Ltd.
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Nature of Litigation
Second appeal against order of State Consumer Disputes Redressal Commission in a consumer complaint involving insurance claim.
Remedy Sought
Appellant sought setting aside of the orders passed by the District Forum and State Commission, contending no liability as no insurance policy was issued.
Filing Reason
Appellant was placed ex-parte before the District Forum and never informed of the proceedings; no insurance policy was ever issued to the complainant.
Previous Decisions
District Forum passed order against appellant ex-parte; State Commission dismissed appeal vide order dated 10.12.2024.
Issues
Whether the appellant insurance company can be held liable when no insurance policy was ever issued to the complainant.
Whether the appeal should be allowed given that the appellant was placed ex-parte and never informed of the proceedings.
Submissions/Arguments
Appellant's counsel stated that the appellant was placed ex-parte before the District Forum and never informed of the orders passed.
Appellant's counsel ascertained that no insurance policy was ever issued by the appellant to the complainant, hence no liability.
Ratio Decidendi
An insurance company cannot be held liable in a consumer complaint if no insurance policy was ever issued to the complainant, and if the company was placed ex-parte and not informed of the proceedings, the orders against it are liable to be set aside.
Judgment Excerpts
Heard Learned Counsel for the Appellant, who states that they were, unfortunately, placed ex-parte before the learned District Forum.
She ascertained that no insurance policy was ever issued by the Appellant/OP-3 to the Complainant.
Therefore, they have no liability with respect to the case.
Procedural History
The appellant was placed ex-parte before the District Forum. The District Forum passed an order against the appellant. The appellant filed First Appeal No. A/776/2023 before the State Consumer Disputes Redressal Commission, Chandigarh, which was dismissed on 10.12.2024. The appellant then filed Second Appeal No.177 of 2025 before the National Consumer Disputes Redressal Commission, along with IA/4986-4989/2025 for stay, condonation of delay, exemption from filing evidence, and exemption from dim documents. The NCDRC allowed the appeal on 05.05.2025.
