INDIAN INSURERS CANNOT REASSESS CAR VALUE

An Indian consumer court has ruled that insurers may not reassess the market value of an insured vehicle once a policy for a specific amount has been issued by the insurer. The Delhi States Consumer Disputes Redressal Commission ruled that National Insurance Co (NIC) should pay Rp180,000 plus 9% interest to Gharam Pal Machocha, who lost his car in May 1999 after insuring it in August 1998. The commission said that if insurers were allowed to reassess the value of a vehicle after the event, then the very purpose of receiving a premium against a set sum insured would be defeated.