BMW breaks down at night, catches fire by morning: Owner wins ₹70.75 lakh insurance payout

A BMW owner has won a 14-year battle against United India Insurance Company after a consumer commission ordered the insurer to pay ₹70.75 lakh for his car, which was completely gutted in a fire after a late-night tyre puncture on a Maharashtra highway, Mint reported on Tuesday.

The insurer had rejected Ravikant S Patil’s claim, arguing that he had violated the policy by leaving the vehicle unattended overnight and had failed to take reasonable steps to prevent further damage. The commission rejected this argument, saying the policy did not impose an absolute ban on leaving a broken-down vehicle unattended.

The commission also held that Patil’s safety could not be compromised merely to protect the car.

BMW found burnt the next morning

The incident dates back to March 8, 2012, when Patil was driving his BMW on a state highway near Dhulkhed in Maharashtra. The car suffered a tyre puncture late at night, and there was no mechanic available nearby.

Patil parked the vehicle near a roadside dhaba, locked it and secured its windows. He then returned home in another vehicle, planning to collect the BMW the next morning.

But when he returned, the car had been completely gutted by fire.

Patil subsequently approached United India Insurance Company for compensation. The insurer rejected the claim, citing the policy condition requiring the owner to take reasonable precautions to prevent further loss.

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Commission says owner took reasonable precautions

The consumer commission disagreed with the insurer’s reasoning. It noted that Patil had parked the BMW safely off the road, locked its doors and secured its windows before leaving.

The commission also found that the policy did not categorically prohibit a policyholder from leaving a broken-down vehicle unattended.

There was no conclusive evidence establishing a direct connection between Patil leaving the vehicle unattended and the fire that destroyed it.

The commission further held that a person stranded on a highway late at night could not be expected to put their safety at risk simply to remain with a damaged vehicle.

United India Insurance to pay ₹70.75 lakh

The commission directed United India Insurance Company to pay ₹70 lakh, the BMW’s insured declared value (IDV).

The insurer was also ordered to pay ₹50,000 for the mental agony and harassment suffered by Patil and ₹25,000 towards litigation costs.

This takes the total payout to ₹70.75 lakh, excluding interest. The commission’s order also provides for interest on the insurance amount.

The case highlights that leaving a broken-down vehicle unattended does not by itself amount to a breach of an insurance policy. Claims have to be assessed based on the policy terms, the precautions taken by the policyholder and the evidence available in each case.