DCDRC Baramulla delivers judgment in favour of flood-affected shopkeeper

Jul 16, 2025

BARAMULLA: In a landmark decision, the District Consumer Disputes Redressal Commission (DCDRC) Baramulla/ Bandipora has ruled in favour of a local shopkeeper, Syed Ibrahim Rizvi, in a case related to the non-settlement of an insurance claim following the devastating floods of September 2014.

The complainant, a resident of Malmoh Pattan, had insured the stock of his shop through a policy issued by Bajaj Allianz General Insurance Company, facilitated by J&K Grameen Bank Khore Sherabad. After the floods submerged his shop for over 15 days, causing complete damage to the insured stock, the complainant approached the bank and submitted a written request to process his claim.

However, despite the bank forwarding the claim to the insurance company, no further action was taken by the insurer, leading the complainant to file a case before the Consumer Commission.

After a thorough examination of evidence, witness testimonies, and legal submissions, the Commission held that there was a clear deficiency in service and unfair trade practice on the part of the insurance company and the bank. The Commission emphasized that once the bank forwards the claim, it constitutes valid and effective intimation to the insurer, regardless of whether the insurer acknowledges receipt.

In its final order, the Commission directed Bajaj Allianz General Insurance Company and J&K Grameen Bank to register the claim and pay an amount of Rs.3,00,000 along with 7% interest from the date of the order till its realization. Additionally, they have been directed to pay Rs.1,00,000 for causing mental agony and indulging in unfair trade practice, and Rs.20,000 towards litigation expenses.

The order, issued on July 15, 2025, was pronounced by Commission President Peerzada Qousar Hussain and Member Nyla Yaseen. The parties have been given a deadline of four weeks to comply with the directions.