Kupwara: Bringing an end to a dispute that had stretched across more than a decade, a long-pending insurance claim case reached its logical conclusion today after the New India Assurance Company Ltd. deposited the entire amount directed earlier by the District Consumer Disputes Redressal Commission (DCDRC), Kupwara.
The Commission had already passed the final order in October 2025, but with the insurer now paying the amount in full, strictly in accordance with the directive, the matter stands conclusively closed.
Officials privy to the matter told GNS, that the insurer deposited ₹8,32,184, covering the assessed loss, compensation, litigation costs and applicable interest.
President DCDRC Kupwara, Peerzada Qousar Hussain, they said, formally handed over the cheque to the complainant today, completing the execution of the order and marking the final stage of compliance.
Notably, the case arose from a burglary reported in 2011 at M/S Shah Enterprises, a ready-made garment unit in Kupwara. The theft, which occurred during the intervening night of September 18 and 19, led to the registration of FIR No. 314/2011 at Police Station Kupwara. The insured promptly notified the New India Assurance Company, which deputed a licensed surveyor to examine the loss. The surveyor’s assessment placed the damage at ₹3,99,171, based on stock registers, purchase bills, bank transactions and tax filings submitted by the complainant.
Despite the completion of the survey process and the submission of all supporting documents, the claim remained unsettled for years. The complainant, Shafiq Ahmad Shah, told the Commission that he had approached the insurer repeatedly but was met with delays and procedural hurdles. Witnesses later corroborated the burglary and the extent of the loss.
During the proceedings, the insurer argued that the complainant had failed to produce essential records. However, the Commission found this defence untenable, observing that the surveyor’s report and documentary evidence sufficiently established the loss.
Citing IRDA claim-settlement guidelines, which mandate that insurers must process claims within 30 days of receiving the survey report, the bench held that the insurer had “failed to act in a timely and reasonable manner,” thereby committing a clear deficiency in service.
The Commission, led by President DCDRC Kupwara, Peerzada Qousar Hussain and Nyla Yaseen as member, had ordered the insurer to pay the assessed loss of ₹3,99,171, interest at 7 percent from the date of the survey, ₹1 lakh as compensation for mental agony caused by the prolonged delay, and ₹30,000 towards litigation expenses. This order concluded the judicial phase of the matter, leaving only the execution of payment pending.
Reacting to the development, the complainant, Shafiq Ahmad Shah, said the payment marks a long-awaited closure to an ordeal that had stretched for more than a decade. “For years I moved from office to office, hoping the company would honour its commitment. Today, with the cheque finally handed over by the Consumer Commission led by Mr. Peerzada Qousar Hussain, I feel a sense of justice and relief,” he said, adding the Commission’s order has restored his faith in due process. (GNS)
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