Renault Duster was insured for Rs 5.75 lakh, but its owner was left chasing the payout after vehicle was gutted in a fire; consumer court orders insurer to pay Rs 6.10 lakh

A consumer commission in Delhi has directed Bajaj Allianz General Insurance to pay Rs 5.75 lakh to a Renault Duster owner whose vehicle was completely gutted in a fire in 2019, after the insurer refused to settle his insurance claim despite receiving the required documents. The commission also ordered the insurer to pay Rs 25,000 as compensation and Rs 10,000 towards litigation expenses, holding it responsible for failing to settle the claim.

Renault Duster catches fire near Delhi petrol pump

According to the order passed by the District Consumer Disputes Redressal Commission, West District, Janakpuri, complainant Pramod Kumar purchased a Renault Duster RXL Diesel Plus 110 PS in 2014.

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He had insured the vehicle with Bajaj Allianz General Insurance under a private car package policy, valid from February 17, 2019, to February 16, 2020. The vehicle had an insured declared value (IDV) of Rs 5.75 lakh, for which Kumar paid a premium of Rs 24,132.

On July 31, 2019, at around 10.37 pm, Kumar was driving home when the vehicle caught fire near a petrol pump in Delhi's Kirti Nagar area. He immediately alerted the police and fire brigade, but the car was completely gutted in the blaze.

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Bajaj Allianz refuses to settle Rs 5.75 lakh insurance claim

Following the incident, Kumar approached the insurance company to claim the insured amount. However, Bajaj Allianz sought several documents and details, including his driving licence, police complaint, fire brigade report, vehicle history, technical report from the manufacturer and details of the occupants inside the car when the fire broke out.

The complainant told the commission that he had submitted all the documents sought by the insurer, including the original signed claim form. Despite this, the insurance company refused to pay the insured amount.

Aggrieved by the rejection, Kumar approached the consumer commission in 2021, alleging deficiency in service. He sought payment of Rs 5.75 lakh, along with Rs 5 lakh as compensation and damages.

What did the Renault technical report reveal about the car fire?

The commission examined the vehicle inspection report prepared by Techliner, which was associated with Renault India.

According to the report, the suspected cause of the fire was the formation of an electrical arc in non-genuine wiring fitted in the vehicle. This reportedly led to the melting of surrounding components, eventually causing the entire car to catch fire.

The report also ruled out a manufacturing defect as the cause of the incident.

The commission noted that the vehicle had been hypothecated with Dena Bank for a loan. However, Kumar submitted a no-objection certificate from Bank of Baroda, following Dena Bank's merger, confirming that the loan had been closed on February 28, 2019, and that full ownership of the vehicle had passed to him.

Consumer commission proceeds ex parte against insurance company

The commission noted that the opposite parties failed to appear before it despite being given opportunities to present their defence. They were eventually proceeded against ex parte on July 22, 2025.

The complainant subsequently submitted evidence through an affidavit and filed written arguments.

In its October 15, 2026, order, the commission observed that Bajaj Allianz had failed to appear and challenge the complainant's testimony or place its defence on record.

It held that the evidence presented by Kumar remained unrebutted and allowed his complaint against the insurance company.

How much must Bajaj Allianz pay the Renault Duster owner?

The consumer commission directed Bajaj Allianz General Insurance to pay the following amounts:

• Rs 5,75,000: Insured declared value of the completely burnt Renault Duster.
• Rs 25,000: Compensation to the complainant.
• Rs 10,000: Litigation expenses.

The total amount payable comes to Rs 6.10 lakh.

The commission directed the insurer to comply with the order within 30 days of receiving it.

It also cleared Renault Motors and NCR Motors India, the manufacturer and authorised service centre respectively, of any deficiency in service, stating that no case had been made out against them.