STATE CONSUMER DISPUTE REDRESSAL COMMISSION

BIHAR, PATNA

Appeal No. 68 of 2012

Oriental Insurance Company Ltd through the Deputy Manager (TP HUB), Regional Office, Pirmohani, Patna

                                                                                                                          … (O.P. No. 1,2,3 & 4) /Appellant

Versus

1.   Amrendra Kumar, Son of Sri Damodar Sah of Village and PO- Kharagpur, PS- Sonbarsa, Kutchahary, District- Saharsa

                                                                                                                                   …. Complainant/O.P. No. 1

2.   The Manager, Guinea Motors Private Limited, Anand Bihar, West Boring Canal Road, Patna                 

                                                                                                                                       …. O.P. No. 5/O.P. no. 2

3.   M/s Tata Motors Finance, Vejola Complex, V.N. Puram Road Chamber, Mumbai.            

                                                                                                                                      …. O.P. No. 6/O.P. No. 3

Before,

Hon’ble Mr. Justice Sanjay Kumar, President

Mr. Ram Prawesh Das, Member

Dated 04.01.2023

As per Sanjay Kumar, President.

O r d e r

Present appeal has been filed by the Oriental Insurance Co. Ltd. for setting aside the order dated 22.12.2011 passed by the Learned District Consumer Disputes Redressal Forum, Saharsa in Complaint Case no. 22 of 2007 whereby and wherunder the learned District Forum has directed appellant-insurance  company to pay Rs. 78,500/- within two months failing which interest
@ 9% p.a.  shall become payable.

          Briefly stated the facts of the case is that complainant had purchased one Tata Spacio vehicle bearing Registration no. BR-19A-3021 under hire purchase agreement from Guinea Motors Pvt. Ltd. Patna and same was insured by the appellant company for the period 10.04.2004 to 09.04.2005 for insured sum of Rs. 3,10,000/-. The loan was provided by M/s Tata Finance. The vehicle was being plied as taxi by the complainant.

          The said vehicle was stolen on 11.11.2004 for which FIR was lodged at Chhautham P.S in Khagaria District. Police investigated the case and submitted final form as occurrence to be true but no clue.  The vehicle could not be recovered. The final form was accepted by the court, Khagaria,.

          Complainant made insurance claim and submitted documents before the concerned branch on 19.12.2005. Since, the vehicle was under hire purchase agreement, appellant-insurance company approached the financer and claim was settled on non-standard basis and a cheque of Rs. 2,35,500/- was paid to the financer.

It is submitted on behalf of counsel for the appellant insurance co. that after theft of the vehicle and submission of final report by the police, the final report was accepted by the court and thereafter the matter was settled between the financer and the insurance co. on non standard basis and 75% of the insured amount was paid to the financer by the insurance Co.

The complainant filed complaint case before the District Consumer Forum, Saharsa for payment of insured amount of the theft vehicle and after hearing all the parties, the District Forum allowed the claim case and directed insurance Co. to pay 100% insured amount to the complainant.

          The insurance has challenged the order passed by the District Consumer Forum whereby, Rs. 78,500/- i.e 25% of the insured amount of the theft vehicle has been directed to be paid to the complainant by the Insurance company.

It is submitted on behalf of complainant/owner of the vehicle that he is entitled for 100% of the insured amount as the case was of total loss and he had in his possession all the required documents in terms of insurance policy as such the settlement on non standard basis between the insurance Co. and the financer was unlawful and done behind his back and without any information to the complainant owner of the theft vehicle. However, it was submitted on behalf of appellant-insurance company that inspite of several letters, the complainant did not produce the relevant documents as such the matter was settled on non-standard basis.

It is submitted on  behalf of counsel for the Tata Motors Finance Company that Pursuant to order passed by the DCF, finance company has already paid Rs. 1,20,701/- to the claimant

          In said view of the matter as the claimant/ owner of the vehicle was not a party to the agreement and  claim was settled by the insurance Co. with the finance company as such said agreement is not binding on the complainant /owner of the theft vehicle. However, claim of claimant with respect to 100% insured amount requires to be decided by the insurance company after hearing all the concerned parties.

          Accordingly, that part of the order by which the District Consumer Forum has directed  payment of Rs. 78,500/- to the complainant-owner by the insurance Co. is set aside and the matter is remanded to the insurance Co. to decide the claim of the claimant with respect to 100% loss and payment of total insured amount. i.e Rs. 3,10,000/- after providing opportunity of hearing to the claimant as well as finance company within three months from the date of production/receipt of copy of order passed by this Commission. The claimant shall submit all the documents demanded by insurance company in order to settle the claim of claimant. 

          With aforesaid modification of the impugned order, this appeal is disposed of.

(Ram Prawesh Das)                                                                            (Sanjay Kumar,J)

       Member                                                                                             President

Md. Fariduzzama