Uttarakhand consumer commission rejects machine-buyer's claim against United India Insurance

The Uttarakhand State Consumer Disputes Redressal Commission has set aside an order directing United India Insurance Company Ltd. to pay Rs 3,42,650 for a machine damaged in transit. In an order pronounced on 13 October 2026, the commission held that the buyer of the machine could not claim under a policy issued in the seller's name. The buyer's complaint was dismissed.

What Happened

A Haridwar-based firm bought a machine from an Ahmedabad-based supplier on 3 March 2012 for Rs 38,76,000. The machine was insured with United India Insurance, but the policy was issued in the supplier's name. According to the order, the machine fell and was damaged while being unloaded at Haridwar. A surveyor assessed the loss at Rs 3,27,650, while the firm claimed Rs 3,42,650. The insurer rejected the claim in June 2013 after an investigation.

In December 2018, the District Commission at Haridwar ordered the insurer to pay Rs 3,42,650 with 6% simple interest and Rs 7,000 as compensation. The insurer appealed.

The State Commission noted that the policy did not show the buyer as the insured, and that the insurer had issued no endorsement transferring the cover to the buyer. The supplier had given a no-objection certificate for the claim to be paid to the buyer. The commission held that this certificate, without an endorsement or assignment recognised by the insurer, could not by itself create an insurance contract between the buyer and the insurer. The supplier, the named insured, had also not been made a party to the complaint.

The commission held the complaint was not maintainable on this ground alone, allowed the appeal and ordered any statutory deposit returned to the insurer. It made no order on costs.

What It Means

The ruling turns on "insurable interest", meaning a legal right to claim under a policy. Per this order, a buyer who relies on a seller's policy may be unable to claim unless the insurer has endorsed or transferred the cover to the buyer.

The order is the commission's finding and may be appealed.

Source: Consumer commission order