United India Insurance Told To Pay Rs 2.93 Lakh After Rejecting Car Claim Over Policy Date Error

Neeraj Garg, a policholder's car was involved in an accident near Kartarpur in July 2025. The insurer had rejected his claim, citing a two-day break in coverage and the absence of a pre-inspection. The commission said the insurer already had a copy of his earlier policy showing the correct dates.

Insurer Had The Previous Policy Details

Garg bought a motor insurance policy from United India Insurance in April 2025 after his earlier policy with Tata AIG expired. While filling in the online proposal form, he entered the previous policy period as April 3, 2024, to April 2, 2025. The correct dates were April 2, 2024, to April 1, 2025, according to a recent report by ‘The Times of India.

He entered the wrong dates in the proposal form. Garg had also submitted a copy of the Tata AIG policy, which showed the correct period. United India Insurance accepted a premium of Rs 19,520 and issued a fresh policy.

After the accident, the insurer declined the claim. It said the incorrect dates indicated a break in coverage and that the vehicle had not undergone the pre-inspection it considered necessary.

The commission noted that the insurer had the previous policy document when it issued the new cover. Its surveyor had assessed the insurer’s net liability at Rs 2,93,507. In those circumstances, the commission considered the rejection hyper-technical and held that it amounted to deficiency in service and an unfair trade practice.

Commission Orders Claim Payment With Interest

The commission directed United India Insurance to pay Garg Rs 2,93,507, with interest at nine per cent a year from the date the claim was repudiated. It also ordered the insurer to pay Rs 10,000 for mental agony and Rs 10,000 towards litigation costs.

The order turns on the documents available to the insurer when it issued the policy. The commission’s finding was that the correct dates were visible in the earlier policy copy, even though the proposal form contained different dates. It therefore did not accept the date discrepancy as sufficient grounds to deny the claim.

For policyholders, the dispute is a reminder to check the proposal form and policy schedule carefully when buying or renewing motor insurance. A wrong date on the old policy could lead the insurer to flag a break in cover or ask for an inspection. Tell them about the mistake as soon as you spot it, and save the reply.

Keep copies of the previous policy, the new policy, the proposal form, and premium receipt. These documents can help establish what information was provided and what cover the insurer issued. If a claim is rejected, ask the insurer for the reason in writing and review it against the policy documents and the records submitted at purchase.

The commission’s order does not mean every mistake in an insurance proposal will be overlooked. The facts here included a copy of the earlier policy with the correct dates and the insurer’s own surveyor’s estimate of the loss. The decision addresses this policyholder’s dispute and the evidence before the commission.

FAQs

Can an insurer reject a motor claim over an error in the previous policy dates?
It depends on the circumstances. In this case, the commission found that the insurer had the earlier policy showing the correct dates when it issued the new cover.

How much was United India Insurance ordered to pay?
The commission ordered it to pay Rs 2,93,507 with nine per cent annual interest, plus Rs 10,000 for mental agony and Rs 10,000 in litigation costs.

What should policyholders do if they spot an error in their insurance form?
Contact the insurer promptly, keep a record of the correction and save copies of the proposal form, policy documents and correspondence.