By Smt. Saji Mathew, Member:
 

The gist of the complaint is as follows:- The Complainant purchased a new Ape diesel 3 wheeler passenger auto rickshaw bearing engine NO.A9DO 239386 and chaisis No.MBX 0000 DFLD 845068 from the 1^st Opposite Party on 04.5.2009. The vehicle was registered as KL 12D 7018. At the time of purchase the 1^st Opposite Party collected Rs.3,208/- as insurance premium and got the vehicle insured with the 2^nd Opposite Party vide policy No.VC000 35669000100 covering the period from 4.5.2009 to 5.5.2010. On 30.11.2009, the vehicle met with an accident and sustained damages. The vehicle was taken to Wayanad vehicles (P) Ltd, Parackal, Muttil, Kalpetta. The upholstery work done at Sree Devi Safa and Upholstery works, Kalpetta. The Complainant spent a sum of Rs. 28,832.80 towards the repair. Then the Complainant preferred claim with the 2^nd Opposite Party with all documents. To the enquiries, the 2^nd Opposite party informed the Complainant that the policy is void as the cheque given by the 1^st Opposite party towards the premium payment was dishonoured. Till the accident and claim the 2^nd Opposite party has not informed the complainant about the dishonouring of the cheque.

2. The 1^st Opposite party collected an amount of Rs.77,290/- including the insurance premium and arranged finance of Rs.75,000/- with Sriram Transport Finance, Company Kozhikode. The declared value for insurance is Rs.1,31,700/-. But the 1^st Opposite Party has collected a sum of Rs.1,52,290/-. The Opposite Party has collected an amount of Rs.20,590/- in excess. This amount is to be returned to the Complainant. There is clear deficiency in service on the part of the Opposite Parties. Therefore the Complainant prays for an order directing the Opposite Parties to pay Rs. 28,832.50 towards repair charge of auto rickshaw and a compensation of Rs.50,000/- and other costs. The Complainant also prays that the 1^st Opposite Party may be directed to pay Rs.23,798/- with 12% interest from 4.5.2009.

3. The 1^st Opposite Party was declared exparte. The 2^nd Opposite Party filed version and stated that the policy was issued in good faith against Indian Bank cheque No.092195 of Managing Partner, Maria Motors, dated 4.5.2009. The cheque was returned stating that 'fund in sufficient'. On receipt of the memo and cheque from bank, on 22.5.2009 itself, the policy issued to the Complainant was cancelled vide endorsement No.01 dated 22.5.2009 and intimated the Complainant vide certificate of posting. The Complainant never cared to clear the issue. Therefore the 2^nd Opposite Party prays for the dismissal of the case.

4. The Complainant was examined as PW1 and documents were marked as Exts.A1 to A9. The 2^nd Opposite Party filed documents which were marked as Ext.B1 to B5. No oral evidence adduced by 2^nd Opposite Party.

5. Here the matters to be considered are:-

1. Whether there is any deficiency in service on the part of the Opposite Parties?

2. Whether the Complainant is entitled for any relief.

    

6. Point No.1:- Opposite Party No.2 in their version stated that a cheque was issued by the 1^st Opposite Party towards the premium of vehicle KL 12D 7018 as alleged by the Complainant. The cheque was dishonoured for insufficient funds. So the 2^nd Opposite Party has cancelled the policy and informed the matter to the Complainant. 2^nd Opposite Party has produced the returned cheque Ext.A1 and document showing the reason for the dishonouring, Ext.B2, B3 the Certificate of posting shows that intimation was given to the Complainant on 23.06.2007. Therefore no deficiency in service can be attributed to 2^nd Opposite Party.

7. From the documents and version of 2^nd Opposite Party, it is evident that 1^st Opposite party has collected the premium amount from the Complainant and issued cheque for the payment of the premium. As a result of dishonouring of the cheque, the policy was cancelled. The Complainant could not claim insurance amount due to the deficiency in service on the side of the Opposite Party. Therefore point No.1 is found against the 1^st Opposite Party.

8. Point No.2:- In this case, Surveyor has made a report estimating the damages up to an amount of Rs.11,273.28. The Complainant is entitled to get this amount from the 1^st Opposite Party. The Complainant is also entitled to get reasonable compensation and other costs from 1^st Opposite Party. Regarding the return of excess price collected by the 1^st Opposite Party there is no document to show the amount of loan availed by the Complainant.

Therefore, the complaint is partly allowed and 1^st Opposite Party is directed to pay Rs.11,273/- (Rupees Eleven thousand Two hundred and Seventy Three only) plus the premium amount Rs.3,200/-, total Rs. 14,473/- (Rupees Fourteen thousand Four hundred and Seventy Three only) to the Complainant. The 1^st Opposite Party is also directed to pay a compensation of Rs.2,000/- (Rupees Two thousand only) and Rs.1,000/- (Rupees One thousand only) as costs. The 1^st Opposite Party has to pay an interest on the ordered amount of Rs. 17,473/- (Rupees Seventeen thousand Four hundred and Seventy Three only) at rate of 10% per annum from the date of the order till payment. The order is to be complied with within 30 days of the receipt of this order.

Pronounced in open Forum on this the day of 30^th July 2010.

PRESIDENT: Sd/-

MEMBER : Sd/-

MEMBER : Sd/-

A P P E N D I X

Witness for the Complainant:

PW1. Sebastian. M.F. Complainant.

Witness for the Opposite Parties:

Nil.

Exhibits for the Complainant:

A1. Receipt dt:29.04.2009.

A2. Copy of Letter. dt:06.05.2009.

A3. Copy of the Certificate of Insurance cum Policy Schedule.

A4. Copy of the Claim Form

A5. Courier Receipt. dt:03.12.2009.

A6 series. Motor Survey Report (final), Receipts and Photos.

A7. Copy of the Certificate of Registration.

A8. Copy of the Driving Licence.

A9. Professional Fee Bill. dt:12.01.2010.

Exhibits for the Opposite Parties:

B1. Cheque No. 092195. dt:04.05.2009.

B2. Reason for cheque return (Photocopy).

B3. Copy of the Certificate of Posting.

B4. Copy of the Certificate of Insurance cum Policy Schedule.

B5. Copy of the Endorsement.