Insurer told to pay ₹3.5 lakh for stolen gold, ₹50,000 as compensation

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The order followed a complaint filed on May 15, 2025, by Prasad Suryavamshi, who had purchased two gold chains worth ₹3,50,822 from Malabar Gold and had insured them with the United India Insurance Company. | Photo Credit: File Photo

The Dharwad District Consumer Disputes Redressal Commission has directed the United India Insurance Company to pay ₹3,50,822, with 10% interest, to a resident of Tadakod in Dharwad district for gold jewellery that was stolen while the insurance policy was still in force.

The commission, comprising president Eshappa Bhute and members V.A. Bolashetty and P.C. Hiremath, also directed the insurer to pay ₹50,000 as compensation for the mental agony and inconvenience caused to the complainant and ₹10,000 towards litigation expenses.

The order followed a complaint filed on May 15, 2025, by Prasad Suryavamshi, who had purchased two gold chains worth ₹3,50,822 from Malabar Gold and had insured them with the United India Insurance Company.

The jewellery was stolen while his mother was wearing it and travelling to her native place. A complaint was subsequently registered at the Haliyal Police Station.

The complainant informed the insurance company about the theft and sought reimbursement under the policy. However, the insurer rejected the claim, contending that the jewellery had been lost due to the negligence of the complainant’s mother. Alleging deficiency in service under the Consumer Protection Act, Mr. Suryavamshi subsequently approached the Commission.

After examining the documents, the Commission observed that the purchase and insurance of the gold jewellery had been established through the records. The theft had occurred during the currency of the policy and was also supported by the surveyor’s report.

The Commission noted that the policy provided for the payment of the insured amount in cases of loss or theft of jewellery and held that the insurer was liable to settle the claim. It observed that consumers purchase insurance for valuable articles to secure financial protection against unforeseen events such as theft or damage.

The insurer has been directed to pay the insured amount of ₹3,50,822 with 10% interest, along with the compensation and litigation expenses, within one month of the order.

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