Renault Triber gutted in fire, owner granted Rs 5.89 lakh despite no third-party insurance

5 min readNew DelhiUpdated: Jun 23, 2026 10:15 AM IST

The insurer submitted that the loss must be assessed by a qualified Insurance Regulatory and Development Authority-licensed surveyor as per provisions of the Insurance Act. (AI-generated image)

A Telangana district consumer commission has ordered United India Insurance Company Ltd to pay Rs 5.89 lakh towards “total loss” settlement and compensation to a woman whose Renault Triber, carrying gold and other valuables, was gutted in a fire due to “mechanical heat and sparks”.

Dealing with a plea by the woman who was staking claim to the policy benefits after her car was gutted, a bench of president Suvarna Jayasri and members I Nageswara Rao and Suma Vala of the Nizamabad District Consumer Commission held that the absence of third-party insurance did not invalidate the own-damage claim.

“This commission notes that the vehicle was completely burnt beyond economical repair. The repair cost of dismantling far exceeds the IDV (Insured Declared Value),” the commission said on May 30.

Fire in stationary vehicle: Court

This commission draws its attention to the extraordinary concession made by the opposite party’s (insurer) own deputed spot surveyor, K Srinivas, in his Survey Report which stated: “There is no TP (third party) injury in this accident.”

This is an unequivocal, on-record finding by the opposite party’s own authorised representative.

The entire rationale for mandatory third-party insurance under the Motor Vehicles Act, 1988 (sections 146 and 147), is to protect third parties from financial harm arising out of vehicle usage.

In this case, the accident was a fire caused by mechanical heat/sparks in a stationary vehicle on the roadside. There was no injury to any third party.

The insurer seeks to use the absence of TP coverage to deny an own-damage (OD) claim in a situation where TP coverage was never needed, never invoked, and expressly found to be irrelevant by its own surveyor.

This is a purely technical ground devoid of any connection to the actual loss suffered by the complainant.

The Telangana State Disaster Response and Fire Services Department officially determined the cause of the fire as “Mechanical Heat or Sparks” — squarely covered under Section 1, Clause (i) of the Standalone Own Damage (SAOD) policy, which says, “loss or damage by fire, explosion, self-ignition, or lightning.”

The factum of loss, the cause of loss, the quantum, and the validity of the SAOD policy during the accident are all undisputed.

The absence of third-party insurance, though a violation of statutory provisions, does not amount to a fundamental breach affecting the own-damage claim.

There is no nexus between such absence and the damage caused to the vehicle.

Blaze, claim submission

The complainant owned the vehicle, i.e., a motor Car (Triber RxZ Manual) manufactured by Renault India Pvt Ltd, and insured her car from time to time with the insurance company, i.e., the opposite party.

On March 3, 2024, the complainant, along with her relatives, was proceeding to Vemulawada. When they reached Posanipet village, Shivar in Jagityal district, fumes came out from the bonnet. Immediately, they stepped out of the car.

Even as they watched, the car burned down along with their luggage and gold. The vehicle was destroyed. Immediately, the complainant informed the insurance company about the incident.

The complainant also submitted relevant papers for the insurance claim amount. But the opposite party repudiated the claim in June 2024, allegedly with mala fide intention, to escape from the liability, which amounts to deficiency of service, it was argued.

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‘IRDA surveyor must assess’

The insurer submitted that mere filing of a police report and investigation is not sufficient. The loss must be assessed by the qualified Insurance Regulatory and Development Authority (IRDA) licensed surveyor as per the provisions of the Insurance Act.

It was submitted that the complaint did not follow the mandatory provisions of the Motor Vehicle Act. She tried to put her mistake on the opposite party. There is no mala fide intention on the part of the opposite party in repudiation to escape from the liability.

“The cause of fire is mechanical heat and sparks. The complainant stated that the vehicle was serviced in October, November 2023, and February 2024 at Renault service centre this shows that the vehicle was suffering from mechanical

defects from the beginning, from the date of the purchase, which are not covered under the policy,” it added.

Significance of ruling

This judgment matters because it prevents insurers from arbitrarily denying own damage claims due to lapsed third-party insurance. It distinguishes “cancellation” from “natural expiry” and establishes that technical, unrelated breaches cannot defeat a legitimate claim unless they are fundamental to the cause of loss.

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Consumers facing similar grievances may contact the consumer helpline in their respective states (Telangana contact: 040 233 94 399) or dial the National Consumer Helpline at 1915 for assistance.

Jagriti Rai works with The Indian Express, where she writes from the vital intersection of law, gender, and society. Working on a dedicated legal desk, she focuses on translating complex legal frameworks into relatable narratives, exploring how the judiciary and legislative shifts empower and shape the consciousness of citizens in their daily lives.

Expertise

Socio-Legal Specialization: Jagriti brings a critical, human-centric perspective to modern social debates. Her work focuses on how legal developments impact gender rights, marginalized communities, and individual liberties.

Diverse Editorial Background: With over 4 years of experience in digital and mainstream media, she has developed a versatile reporting style. Her previous tenures at high-traffic platforms like The Lallantop and Dainik Bhaskar provided her with deep insights into the information needs of a diverse Indian audience.

Academic Foundations:

Post-Graduate in Journalism from the Indian Institute of Mass Communication (IIMC), India’s premier media training institute.

Master of Arts in Ancient History from Banaras Hindu University (BHU), providing her with the historical and cultural context necessary to analyze long-standing social structures and legal evolutions. ... Read More

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