The policy itself identified a non-RTO vehicle
Kesri Devi bought a Komki XGT-X4 slow-speed electric cycle from a Hamirpur dealer on 28 February 2024. Her Cholamandalam MS comprehensive policy, in force from 6 March 2024, described it as a slow-speed, non-RTO electric vehicle. When stray animals damaged the parked cycle on 7 May, the insurer appointed a surveyor but rejected the claim on 28 May because the vehicle had no RTO registration.
That reason had to be tested against both the vehicle’s certified category and the cover Chola MS had sold. The dealer confirmed that the cycle did not require registration and had helped Devi send claim emails to the insurer.
The Hamirpur commission’s finding
The District Consumer Commission considered the limited statutory exception for qualifying low-speed electric two-wheelers: a maximum 30-minute motor output of 250 W or less and an electronically capped top speed of 25 km/h or less. The record identified Devi’s model as non-RTO, with a certified 25 km/h limit; the policy itself used the same category. On those documents, lack of registration could not support this repudiation. The commission found deficiency in service and unfair trade practice by the insurer. It dismissed the complaint against the assisting dealer.
The decision does not exempt every electric scooter from registration. Motor output, certified speed, vehicle classification and the relevant law must be checked for the particular model. Nor does a comprehensive policy disappear merely because the insured vehicle lawfully needs no mandatory RTO registration.
What Chola MS was ordered to pay
| Component | Order |
|---|---|
| Surveyor-assessed net loss | ₹15,526.50 |
| Interest on that sum | 9% a year from complaint filing until realisation |
| Mental agony and inconvenience | ₹5,000 |
| Litigation costs | ₹5,000 |
| Fixed total, before interest | ₹25,526.50 |
On 17 July 2026, the commission used the insurer’s own net survey assessment of ₹15,526.50 after the policy excess. It added ₹5,000 each for compensation and costs, plus the stated interest. The award was based on assessed loss, not an automatic payout of every amount originally requested.
The file comparison that matters
In a comparable dispute, we would compare the vehicle’s manufacturer certificate with the power and speed limits, the policy’s non-RTO label, the insurer’s exact rejection clause and the surveyor’s assessment. A vehicle outside those limits could raise a different registration question.
For a current Chola MS dispute, our insurer guide lists its grievance route and escalation contacts.
