NCDRC upholds full IDV award against Shriram General Insurance for three lost trucks

The National Consumer Disputes Redressal Commission (NCDRC) on 6 November 2026 dismissed three revision petitions filed by Shriram General Insurance Company and upheld orders that it pay two truck owners in Chhattisgarh the full insured declared value (IDV), the sum a vehicle is insured for, of three trucks. The awards upheld are Rs 25,32,148, Rs 10,18,346 and Rs 25,12,900, each the IDV less a compulsory deductible of Rs 1,500.

What Happened

According to the order, the owners rented the trucks out on monthly rent in May 2019. The person who hired them stopped paying and the trucks were not returned. After an FIR on 29 May 2019, the police filed a chargesheet against him and six co-accused and concluded, per the order, that the trucks had been sold or dismantled beyond recovery. These are allegations, not findings of guilt; the accused are presumed innocent until proven guilty in court, and due process continues.

The owners claimed on a total-loss basis in July 2019. On 18 October 2019 the insurer rejected all three claims on two grounds: that criminal breach of trust and cheating were not covered, and that it was told 52 to 53 days late.

The NCDRC held that an insurer cannot go beyond the grounds in its rejection letter. It said that under Section 410 of the Indian Penal Code, property lost through criminal breach of trust is "stolen property", and that the policy covered theft and a "malicious act". Relying on Supreme Court rulings, it held that a claim cannot be rejected only for late notice to the insurer when the police were told promptly. Renting out a goods carrier did not breach the policy's limits on use, it said.

The orders affirmed also keep the earlier directions: interest at 6% a year from 18 October 2019 (9% if payment is delayed), Rs 25,000 for mental agony and Rs 3,000 as litigation costs in each case.

What It Means

For owners of insured commercial vehicles, the order says that an insurer's rejection letter fixes the grounds it can rely on, and that prompt police reporting can outweigh delay in telling the insurer. The NCDRC's order may be appealed. Policyholders with a rejected claim can approach the National Consumer Helpline on 1915 or file a complaint through e-Daakhil.

Source: Consumer commission order