ETV Bharat / bharat

Hyderabad Dist Consumer Panel slaps Rs 22 crore-plus fine on insurance company

The Hyderabad Consumer Commission ordered United India Insurance Company to pay the complainant, Swarna Tollway Pvt Ltd, Rs 22.42 crore insurance premium with 9 percent interest, along with Rs 5 lakh in compensation and Rs 20,000 for the legal costs for negligence in paying insurance compensation for a road that was washed away in floods.

ss
ss
author img

By

Published : Jun 18, 2022, 6:22 PM IST

Hyderabad: In a landmark judgment, the District Consumer Commission-II, Hyderabad on Thursday imposed a fine of over Rs 22 crore on an insurance company for alleged negligence in paying roadside insurance compensation. In the judgment pronounced in this regard, the Hyderabad Consumer Commission ordered United India Insurance Company to pay the complainant, Swarna Tollway Pvt Ltd, Rs 22.42 crore insurance premium with 9 percent interest, along with Rs 5 lakh in compensation and Rs 20,000 for the legal costs for negligence in paying insurance compensation for a road that was washed away in floods.

Swarna Tollway, a Hyderabad-based company set in Somajiguda, had earlier entered into an agreement with NHAI to maintain the national highway from Tada to Nellore. In 2015, United India Insurance paid a premium of Rs 32,90,871 for the road with an asset and business interruption risk policy. The company-run road was completely washed away by floods in November 2015.

Swarna Tollway informed the insurance company and demanded Rs 43,55,96,081 as insurance money. The insurance company initially paid Rs 4 crore and said it would pay the rest after assessing the loss. The dealing became controversial after reports and portfolios were delayed and a final settlement was made for Rs 8.5 crore. Swarna Tollway later approached the Consumer Commission and said it had to shell out an additional Rs 7.95 crore for the temporary diversion.

The bench comprising Vakkanti Narsimha Rao, chairman of the Hyderabad Consumer Commission-2, and Parupalli Jawaharbabu, ruled that United India Insurance Company should pay Rs 22.42 crore to Swarna Tollway Pvt Ltd.

Also read: Consumer panel asks SBI to compensate Telangana man defrauded by cyber criminals 9 years ago

Hyderabad: In a landmark judgment, the District Consumer Commission-II, Hyderabad on Thursday imposed a fine of over Rs 22 crore on an insurance company for alleged negligence in paying roadside insurance compensation. In the judgment pronounced in this regard, the Hyderabad Consumer Commission ordered United India Insurance Company to pay the complainant, Swarna Tollway Pvt Ltd, Rs 22.42 crore insurance premium with 9 percent interest, along with Rs 5 lakh in compensation and Rs 20,000 for the legal costs for negligence in paying insurance compensation for a road that was washed away in floods.

Swarna Tollway, a Hyderabad-based company set in Somajiguda, had earlier entered into an agreement with NHAI to maintain the national highway from Tada to Nellore. In 2015, United India Insurance paid a premium of Rs 32,90,871 for the road with an asset and business interruption risk policy. The company-run road was completely washed away by floods in November 2015.

Swarna Tollway informed the insurance company and demanded Rs 43,55,96,081 as insurance money. The insurance company initially paid Rs 4 crore and said it would pay the rest after assessing the loss. The dealing became controversial after reports and portfolios were delayed and a final settlement was made for Rs 8.5 crore. Swarna Tollway later approached the Consumer Commission and said it had to shell out an additional Rs 7.95 crore for the temporary diversion.

The bench comprising Vakkanti Narsimha Rao, chairman of the Hyderabad Consumer Commission-2, and Parupalli Jawaharbabu, ruled that United India Insurance Company should pay Rs 22.42 crore to Swarna Tollway Pvt Ltd.

Also read: Consumer panel asks SBI to compensate Telangana man defrauded by cyber criminals 9 years ago

For All Latest Updates

ETV Bharat Logo

Copyright © 2025 Ushodaya Enterprises Pvt. Ltd., All Rights Reserved.