Maharashtra consumer commission upholds Rs 16.49 lakh car claim against Tata AIG

The Maharashtra State Consumer Disputes Redressal Commission on 5 November 2026 dismissed an appeal by Tata AIG General Insurance and upheld an order directing it to pay a car owner Rs 16,49,370 for an accident claim it had rejected on the ground of drunk driving. The insurer must also pay 12% annual interest from 20 July 2005 until payment.

What Happened

According to the order, the policyholder held a private car package policy from Tata AIG covering 26 June 2004 to 25 June 2005. On 14 May 2005 the car met with an accident near Mahim, Mumbai, while the policyholder's son was driving. A police FIR alleged that the driver was under the influence of alcohol, and a forensic laboratory report recorded 126 mg of alcohol per 100 ml of blood. Relying on these, the insurer rejected the claim on 20 July 2005 under a policy clause that excludes cover for driving under the influence.

A district commission in South Mumbai partly allowed the policyholder's complaint. It awarded Rs 16,49,370, the surveyor's assessed loss after 15% depreciation, plus Rs 20,000 for mental harassment, Rs 20,000 for garage charges and Rs 5,000 for litigation costs.

The State Commission held that an insurer that invokes an exclusion clause carries the burden of proving it, and that an FIR or a disputed laboratory report is not enough without showing how the sample was collected, kept and handled. It noted that only 2 ml of blood was taken, no breath-analyser test was done at the spot, and questions remained over the time taken to analyse the sample and how it was preserved. It also noted that the criminal case against the driver did not end in a conviction: the High Court quashed it after a settlement. An FIR is an allegation, not a finding of guilt; the accused are presumed innocent until proven guilty in court.

What It Means

For motor policyholders, the order holds that an insurer rejecting a claim under a drink-driving exclusion must prove its case with reliable evidence, not an FIR or a disputed test alone. The commission also found the surveyor's loss assessment fair. The State Commission's order may be appealed. Consumers with a disputed insurance claim can seek help through the National Consumer Helpline (1915) or file a complaint on e-Daakhil.

Source: Consumer commission order