Chandigarh, March 1 -- The Chandigarh state consumer disputes redressal commission held an insurance firm liable for deficiency in service for wrongfully turning down a home insurance claim arising from internal leakage damage.

The commission directed the firm, Liberty General Insurance Ltd, to pay Rs.3.86 lakh to the complainant, Dheeraj Khanna of Khudda Lahora, for the losses he suffered due to this and Rs.35,000 as compensation for the harassment faced and litigation costs. They observed that "internal leakage cannot be equated with seepage" and exclusion clauses must be construed strictly.

The commission, comprising Justice Raj Shekhar Attri as president and Preetinder Singh as member, held that the damage to flooring, POP, paint an...