Mr. Alok Sharma, a resident of Nagpur, recently shared a distressing experience with his insurance provider, “Suraksha General Insurance.” He had paid a premium of Rs 10,500 on July 20, 2026, through an online payment portal for the renewal of his insurance policy for his Maruti Swift VXI car. The new policy was meant to be effective from August 1, 2026, to July 31, 2027.

The company had assured him that the policy document would be issued by July 28, 2026. However, despite numerous follow-ups, emails, and receiving a formal acknowledgment with the case reference number 2026-A8871, the company failed to issue the renewed policy. Consequently, his previous policy lapsed on July 31, 2026, leaving his vehicle uninsured.

This situation has put Mr. Sharma in a precarious position. He is now legally barred from driving his car and is completely exposed to significant financial liability in the event of an accident or theft. This act by the insurance company, of accepting the premium but not providing the contracted service, amounts to a serious deficiency in service and constitutes an unfair trade practice. He has since lodged a formal complaint with the Insurance Regulatory and Development Authority of India (IRDAI) and is seeking advice on further steps to resolve the matter swiftly.

Advice in such cases

If you find yourself in a similar predicament, it is crucial to act systematically to protect your rights.

• Immediately send a formal written complaint or legal notice to the insurance company’s highest grievance redressal authority, detailing the issue, payment details, and the lack of a policy document.
• Do not drive the vehicle, as it is a violation of the Motor Vehicles Act and exposes you to immense financial risk.
• Consider purchasing a new policy from a different, reputable insurer to ensure you are legally covered while you pursue your claim against the defaulting company.
• File a complaint on the IRDAI’s Integrated Grievance Management System (IGMS) portal. This is an effective mechanism for escalating issues.
• If the issue is not resolved, you can approach the Insurance Ombudsman or file a case in the Consumer Dispute Redressal Commission for deficiency of service.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

Such cases are primarily governed by civil and regulatory laws rather than criminal statutes like the Bharatiya Nyaya Sanhita (BNS).

• The Consumer Protection Act, 2019: This is the primary legislation under which you can seek relief. The failure to issue a policy after accepting the premium is a clear “deficiency in service” and an “unfair trade practice.” You can claim not only the policy issuance or a refund but also compensation for mental agony and any consequential losses.
• The Indian Contract Act, 1872: The payment of a premium and its acceptance by the insurer forms a contract. The failure to deliver the policy document is a breach of this contract.
• The Insurance Act, 1938 and IRDAI Regulations: These laws govern the conduct of insurance companies and set timelines for policy issuance and grievance redressal. Violations can lead to penalties for the insurer.

If you are the complainant

As the person who has been wronged, you should take the following structured steps:

• Organize Documentation: Collect all evidence, including the payment receipt, bank statements, email communications, screenshots of the application, and any reference numbers provided.
• Formal Complaint to Insurer: Lodge a formal complaint with the insurer’s Grievance Redressal Officer (GRO). Every insurance company is mandated by IRDAI to have one.
• Escalate to IRDAI: If you do not receive a satisfactory response from the insurer within 15 days, escalate the matter by filing a complaint on the IRDAI’s IGMS portal.
• Approach the Insurance Ombudsman: This is a quasi-judicial body that resolves disputes between individuals and insurance companies without the need for formal court proceedings. Their decision is binding on the insurer.
• File a Consumer Complaint: You can file a case with the District, State, or National Consumer Dispute Redressal Commission, depending on the value of the claim.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

If you are the victim

Being a victim in this scenario means you are exposed to immediate risks. Here’s what to prioritize:

• Cease Using the Vehicle: The most critical step is to stop driving your car immediately. If you are involved in an accident, you will be personally liable for all damages and could face legal action under the Motor Vehicles Act.
• Secure Alternative Insurance: To get back on the road legally, purchase a new third-party or comprehensive insurance policy from another provider without delay. This mitigates your immediate risk while you fight for your rights with the original company.
• Preserve All Records: Keep detailed records of your inability to use the vehicle and any costs incurred for alternative transportation. These can be claimed as damages in your consumer complaint.
• Follow the Grievance Process: While you have secured new insurance, continue to pursue the complaint against the first company for a full refund of the premium and compensation for the harassment and deficiency in service.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

How the police behave in such cases

The police have a very limited role in such matters as they are primarily civil or contractual disputes. The police will not register an FIR for “deficiency of service.” Their involvement would typically only occur in two scenarios:

• Traffic Violation: If you are caught driving the vehicle without a valid insurance policy, the traffic police will issue a challan (fine) under the provisions of the Motor Vehicles Act.
• Criminal Fraud: If you can provide strong evidence that the insurance company or its agent acted with a criminal intent to cheat you from the outset (e.g., it was a fake company or they had no intention of ever issuing a policy), you could file a complaint for cheating under the Bharatiya Nyaya Sanhita (BNS). However, proving criminal intent in cases of service delays is extremely difficult.

FAQs people normally have

Can I get a full refund of my premium?
Yes, since the service was never provided and the contract was not honored, you are entitled to a full refund of the premium you paid.

Can I sue the company for mental harassment?
Yes, under the Consumer Protection Act, 2019, you can claim compensation for the mental agony, harassment, and financial loss caused by the insurer’s negligence.

Is an email confirmation of payment enough proof?
Yes, an email confirmation, along with a bank statement showing the debit, is strong evidence of the transaction and the formation of a contract.

What evidence is required?

To build a strong case, you must have the following evidence:

• Proof of payment: Bank statement, transaction ID, or payment gateway receipt.
• All written communication: Emails, letters, or messages exchanged with the insurance company.
• Application/Proposal form: A copy of the form you filled out for the renewal.
• Previous policy document: To establish the context of the renewal.
• Any case numbers or reference IDs provided by the company’s customer service.

How long will the investigation take?

The timeline for resolution can vary significantly based on the channel you pursue:

• Insurer’s Internal Grievance Cell: Typically resolves issues within 15 days as per IRDAI guidelines.
• Insurance Ombudsman: The process can take anywhere from 1 to 3 months.
• Consumer Commission: This is a more formal legal process and can take several months to over a year, depending on the complexity of the case and the workload of the commission.

Advocate Sudhir Rao, Supreme Court of India