Legal Question in Consumer Law in India

Hi,

I was trying to renew my vehicle insurance on 4th April 2014. I called up a insurance company 'X' and they came for the inspection on the same day. I paid insurance premium by cheque. I filled up the application form and the person left saying that I will be receiving the receipt and the soft copy of the policy form by next day. i.e. 5th April 2014.

I waited for more than 4 days. But there was no mail or any call from them regarding the payment receipt or the soft copy. I had no idea on what was going from their side. I was bit worried and felt that something had gone wrong. I repeatedly called the customer care and the person who came for inspection. No proper response.

Then i decided that i need to do something as my insurance was already expired. I went ahead and put a stop payment on the cheque which I had issued earlier to company 'X'. I Immediately applied for insurance from another leading insurance company 'Y' and i got the soft copy within a day of inspection.

After nearly 2 weeks the previous insurance company 'X' called me and informed about the cheque bounce and asking me to pay again. As i will not be paying again, can this company take any legal action on me. The premium amount is about ~6500/-.

Please advice me on this.


Asked on 4/15/14, 11:38 pm

2 Answers from Attorneys
Rajiv Chandhok Ph: +919810050896 https://www.linkedin.com/in/rajiv-chandok-0827b733/

no action can be taken against you for the bouncing of the cheque as it is not a legally recoverable debt within the meaning of chapter 17 of the NIAct 1881. You may drop in a detailed query at [email protected]

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JSR/16414

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Answered on 4/16/14, 12:00 am
Fca Prashant Chavan Expert Edge LLP

16.04.2014

Dear Sir / Madam,

Something is amiss somewhere. It takes just 3 days for clearing a cheque and you say that you waited for 4 days before issuing the stop payment instruction. The Insurance Company ought to have deposited the cheque the very next day and it ought to have been already cleared before you stopped the payment.. Anyway, you should issue a simple letter to the Insurance Company that you are no longer interested in their policy and hence you have stopped payment.

Regards,

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Answered on 4/16/14, 9:12 am


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