Pune Consumer Court Orders Insurers to Replace iPhone X or Refund Rs 89,000 Over Wrongful Claim Rejection
Pune, 1st March 2026: The District Consumer Disputes Redressal Commission, Pune, has directed The Oriental Insurance Company Limited and AmTrust Mobile Solutions Pvt. Ltd. to either provide a brand new Apple iPhone X (64GB) or refund its original purchase price of ₹89,000 to a Pune resident. The order comes after the insurance providers wrongfully rejected her second damage claim.
The consumer panel, presided over by President Anil B. Jawalekar and Member Shubhangi J. Dunakhe, also ordered the insurance companies to pay ₹10,000 as compensation for mental agony and ₹3,000 towards litigation costs.
The complainant, Pallavi V. Barsagade, a resident of Dhayari, Pune, purchased an Apple iPhone X (64GB) for ₹89,000 from Reliance Digital (Reliance Retail Ltd.) in Erandwane on January 7, 2018. Upon the store representative’s recommendation, she also purchased a mobile insurance policy for ₹15,000.
Roughly 15 days later, while she was riding a two-wheeler, two individuals attempted to snatch the phone, causing it to fall. The device sustained scratches and a cracked camera lens. Following her first insurance claim, she was provided with a replacement device. However, the complainant alleged that the replaced phone was a “duplicate” and was handed to her in a Samsung J7 box. She also had to pay ₹11,000 as processing/repair charges for this replacement.
Sometime later, the replaced phone fell at her office, severely damaging its back panel. When she filed a second insurance claim, it was rejected. The insurers argued that her policy only allowed for one full replacement, which had already been fulfilled.
The insurance companies argued that the policy’s terms and conditions explicitly limited claim approvals to a single replacement. However, the Commission noted a significant deficiency in service. The insurers failed to provide substantial evidence or written documentation proving that the complainant was informed that her policy would be terminated after the first replacement.
Furthermore, the Commission observed that during the first claim, the complainant had paid ₹11,000 from her own pocket. Thus, the insurers’ defense that they had exhausted the total insured value (₹89,000) during the first replacement did not hold ground.
The Commission held The Oriental Insurance Company and AmTrust Mobile Solutions jointly and severally liable for deficiency in service. The forum directed them to:
- Provide a new Apple iPhone X (64GB) within 45 days, OR
- Refund the amount of ₹89,000 with an interest rate of 4% per annum from the date the complaint was filed (September 12, 2018). If the payment is delayed beyond 45 days, the interest rate will increase to 6% per annum.
- Pay an additional ₹13,000 collectively for mental harassment and legal costs.
The complainant is required to return the damaged mobile phone to the insurers upon receiving the replacement or refund.
The Commission cleared Reliance Digital and Reliance Retail Ltd. (Opposite Parties 1 and 2) of all charges, stating they were merely the sellers and had no authority over the approval or rejection of insurance claims.
