A Himachal Pradesh consumer court has mandated Cholamandalam MS General Insurance to pay a woman over Rs 25,500 after ruling that her electric cycle claim was wrongly denied on the basis of non-registration, despite statutory exemptions for low-speed electric two-wheelers.
A Himachal Pradesh consumer commission has ordered Cholamandalam MS General Insurance Company to pay a woman more than Rs 25,500 after finding that it wrongly rejected her claim for a damaged electric cycle simply because the vehicle was not registered with the Regional Transport Office, even though the model was exempt from registration.
The case was filed by Kesri Devi before the Hamirpur District Consumer Disputes Redressal Commission, where president Hemanshu Mishra and members Sneh Lata and Joginder Mahajan examined whether an insurer could deny a comprehensive claim on that basis. The commission said the rejection reflected bad faith because the company had accepted a premium for a certified “Non-RTO Category” vehicle and later refused to honour the policy when the cycle was damaged.
According to the complaint, Devi bought a Komki XGT-X4 low-speed electric cycle from GOROX in Hamirpur on February 28, 2024. The vehicle, which had a maximum speed of 25 kmph, was insured under a comprehensive policy from March 6, 2024, to March 5, 2025. She said the cycle was damaged on May 7, 2024, after being hit by stray animals while parked outside her home, and that a surveyor was appointed before the insurer repudiated the claim on May 28, 2024. The company argued that the absence of temporary or permanent registration violated the Motor Vehicles Act and the policy terms.
The commission rejected that argument, pointing to the Central Motor Vehicles Rules, 1989, and a Gazette notification dated April 24, 2014, which exempt electric two-wheelers with a motor output of 250 watts or less and a maximum speed of 25 kmph or below from registration, a driving licence and mandatory third-party insurance. It also noted that the policy itself described the cycle as a “SLOW SPEED, NON-RTO” vehicle and that the dealer had acknowledged registration was not required. On that basis, the panel said the insurer knew exactly what it was covering and could not later rely on non-registration to avoid payment.
The commission ordered the insurer to pay Rs 15,526.50 for the assessed loss, plus interest at 9% a year from the date the complaint was filed until payment. It also awarded Rs 5,000 for mental agony, harassment and inconvenience and Rs 5,000 in litigation costs. The complaint against the dealer was dismissed after the commission found no deficiency in service on its part. The ruling adds to a growing body of consumer disputes in Himachal Pradesh involving electric vehicles and registration duties; in another recent case, the same state’s consumer commission directed a dealer to register an electric motorcycle or refund most of the buyer’s money.
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