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Dealer and Insurer Held Liable for Customer Car Accident

A consumer commission has ordered a dealer and insurance company to compensate a customer after his car was crashed while being moved without permission.

Published 1 Oct 2026
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A consumer commission has ordered a dealer and insurance company to compensate a customer after his car was crashed while being moved without permission.

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Dealer and Insurer Held Liable for Customer Car Accident
Image: Renault Duster — official image
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A state consumer commission in West Bengal has ruled against a car dealer and an insurance company following an accident involving a customer's vehicle. The owner had left his Renault Duster with an authorized dealer for routine servicing and minor repairs on March 2, 2018.

Without the owner's knowledge or consent, the dealer moved the vehicle to another branch. The car was subsequently destroyed in a crash between Mecheda and Haldia on March 16, 2018, which also resulted in the driver's death. The insurance company initially rejected the claim, citing a delay in reporting and discrepancies in workshop records.

Renault Duster
Image: Renault Duster — exterior

The commission determined that the dealer failed in its duty to protect the vehicle. It rejected the dealer's argument that the movement was part of standard test-drive procedures. Furthermore, the commission criticized the insurer for failing to conduct an independent investigation. The authorities ordered a total compensation of 4.25 lakh INR, including 9 percent annual interest starting from April 4, 2019. The insurer must now appoint a surveyor to assess the damage within 15 days.

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Ajit Narayan Singh
Editor, Nepal AutoMart

Writes on vehicle pricing, taxation and the Nepali auto market from ongoing tracking of distributor price lists. Editorial policy.

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