In a significant ruling, the State Consumer Commission in Dehradun has ordered the National Insurance Company Limited (NICL) to settle an insurance claim for ₹2.38 lakh in favor of Sher Singh Kholia. The commission emphasized that insurance companies have a duty to verify discrepancies in official documents before rejecting claims. Kholia had sought compensation for his Maruti Alto, which was severely damaged in an accident on April 14, 2006. NICL denied the claim, citing that Kholia lacked a valid driving license at the time of the accident. This decision was based on a report from the ARTO in Haldwani, which incorrectly stated that Kholia's license was valid only until May 31, 2001. However, Kholia's license clearly indicated a validity until May 31, 2011. The commission highlighted that ordinary citizens rely on statutory documents and cannot be expected to independently verify such records. It found no evidence of willful misrepresentation by Kholia and ruled that he acted in good faith. The order reinforces the importance of consumer rights and the obligations of insurers to ensure fair treatment in claims processing.