Order dictated by:

Sh.Anoop Sharma, Presiding Member.

1.       Sh.Gurminder Singh has filed the present complaint  under section 12 of the  Consumer Protection Act alleging therein that he alongwith his wife purchased one vehicle Pajero Sport from opposite party No.2 and opposite party No.2 got insured the said vehicle from opposite party No.1 and handed over cover note issued from opposite party No.1 covering the risk for the period from 26.11.2014 to 25.11.2015. The said vehicle was purchased  by the complainant from opposite party No.2 on 26.11.2014  by paying all the amounts including registration and insurance charges to opposite party No.2 . Opposite party No.2 issued the cover note of opposite party No.1 to the complainant while giving the delivery of the said vehicle.  When on the expiry of the period of said cover note, complainant approached opposite party No.1 for its renewal, he came to know that the earlier cover note was cancelled as they had not received the payment from opposite party No.2 and further the complainant is not entitled for No Claim Bonus for the current year insurance which comes out to be Rs. 10000/- approximately. The complainant in order to avoid further complications got his vehicle insured from opposite party No.1 without getting No claim bonus . The complainant approached opposite party No.2 to refund the amount of Rs. 49,807/- taken on the pretext of insurance  , but the opposite party No.2 refused to pay the said amount. Vide instant complaint, complainant has sought for the following reliefs:-

(a)     Opposite parties be directed to refund the amount of Rs. 49,807/- alongwith interest @ 12% p.a. from 16.1.2014 till realization ;

(b)     Opposite parties be also directed to pay compensation to the tune of Rs. 40000/- ;

(c )     Opposite parties be also directed to pay adequate litigation expenses.

Hence, this complaint.

2.       Upon notice, opposite party No.1 appeared and filed written version in which it was submitted that the cover note issued for the period from 2014 to 2015 was cancelled due to non payment of premium, therefore, complainant was not entitled for any No claim bonus. It was admitted that replying opposite party issued cover note without NCB to the complainant.. It was denied that replying opposite party issued any fake insurance cover note. Rather it was submitted that as no premium was paid for the insurance in dispute, therefore, the same was cancelled and due notice was issued. While submitting that as no premium was received by the replying opposite party, therefore, the insurance cover note was duly cancelled and there is no liability of replying opposite party.

3.       Opposite party No.2 in its written version has taken certain preliminary objections stating therein that complaint is not maintainable either on facts or under the law against opposite party No.2; that complainant has not approached this Forum with clean hands. Various material facts have been concealed and distorted version of the facts have been deliberately presented to pressurize and harass opposite party No.2. ; that Consumer Fora cannot become a tool at the hands of unscrupulous persons who file complaint merely with a view to extract money in the garb of compensation. On merits, it was admitted that complainant purchased the vehicle in question from opposite party No.2, however the insurance cover note was got issued from/on behalf of opposite party No.1 in favour of the complainant subject to the condition that complainant will make payment of the insurance cover to the tune of Rs. 49,807/-. But the complainant never made payment of the insurance cover resulting into cancellation of the policy. It was submitted that complainant was not entitled for “No claim bonus” as he never paid the premium for first insurance cover. While denying and controverting other allegations, dismissal of complaint was prayed.

4.       In his bid to prove the case Sh.Deepinder Singh,Adv.counsel for the complainant tendered into evidence affidavit of the complainant Ex.C-1 , copy of invoice Ex.C-2  copy of policy documents Ex.C-3 and Ex.C-4, copy of cheque issued by opposite party Ex.C-5 and closed the evidence on behalf of the complainant.

5.       To rebut the aforesaid evidence Sh. R.P.Singh,Adv.counsel for opposite party No.1 tendered into evidence  affidavit of Sh.Shivali Sharma,Sr.Executive Ex.OP1/1 alongwith documents Ex.OP1/2 to Ex.OP1/7. However, evidence of opposite party No.1 has been closed by order  vide order dated  27.1.2017 as opposite party No.1 did not produce any further evidence despite affording of  opportunities .

6.       On the other hand Sh.Updip Singh,Adv.counsel for opposite party No.2 tendered into evidence affidavit of Sh. Revant Singh,Prop Ex.OP2/1 and account statement of the complainant in the books of accounts of opposite party No.2 Ex.OP2/2 and closed the evidence on behalf of opposite party No.2.

7.       We have heard the ld.counsel for the parties and have carefully gone through the record on the file.

8.       From the appraisal of the pleadings as well as evidence on record, it becomes evident that  complainant alongwith his wife purchased vehicle Pajero Sport from opposite party No.2  vide Invoice No. 00163 dated 26.11.2014, copy of the same accounts for Ex.C-2 on record. Opposite party No.2 got the said vehicle insured from opposite party No.1 and handed over the cover note issued from opposite party No.1 covering the risk period from 26.11.2014 to 25.11.2015, copy of cover note  is Ex.C-3 on record. It was the case of the complainant that on the purchase of said vehicle, he has paid all the amounts including registration and insurance charges to opposite party No.2 and opposite party No.2 issued cover note of opposite party No.1 while giving the delivery of the said vehicle.  It has been contended on behalf of the complainant that at the time of renewal of earlier cover note, complainant came to know that  the earlier cover note was cancelled due to non payment of insurance charges from opposite party No.2. However, to avoid further complications, complainant got the vehicle insured from opposite party No.1 without getting no claim bonus, copy of cover note is Ex.C-4 on record. The complainant then approached the opposite party No.2 to refund  the amount of Rs. 49,807/- taken on the pretext of insurance  taken from opposite party No.1, but opposite party flatly refused to pay the same. On the other hand , opposite party No.1 has specifically been contended that  the cover note issued for the period from 2014 to 2015 was cancelled due to non payment of premium and due notice was issued to the complainant, copy of notice regarding dishonouring of cheque  No. 139172 dated 26.11.2014 accounts for Ex.OP1/4. However, ld.counsel for opposite party No.2 has vehemently been contended that the insurance cover note was got issued from/on behalf of opposite party No.1 in favour of complainant subject to the condition that complainant will make payment of the Insurance cover to the tune of Rs. 49,807/-. But when the complainant did not make payment for the insurance of the vehicle to the tune of Rs. 49,807/-, the cover note stood cancelled by opposite party No.1 due to non payment of insurance charges to opposite party No.1.

9.       But, however, from the appreciation of the facts and circumstances of the case, it is becomes evident that vehicle was purchased by the complainant from opposite party No.2 vide invoice dated 26.11.2014 , copy of the same is Ex.C-2 on record. The opposite party No.2 got the vehicle insured from opposite party No.1 for the period from 26.11.2014 to 25.11.2015, cover note in this regard has been issued by opposite party No.1. But, when the complainant  approached the opposite party No.1 for renewal of  policy, he came to know that  the previous cover note was cancelled due to non payment of premium which the complainant paid to opposite party No.2 at the time of purchase of the vehicle , which fact is proved from document i.e. copy of cheque Ex.C-5 issued by opposite party No.2 in favour of opposite party No.1 . The case of opposite party No.2 is that the cheque issued for the issuance of cover note  of the vehicle in question  has been dishonoured  and as such the earlier cover note was cancelled . So it is proved beyond doubt that the complainant has already made payment of insurance charges as well as for registration of the vehicle to opposite party No.2 at the time of purchase of the vehicle and it is opposite party No.2, who failed to make payment of the insurance charges to opposite party No.1 resulting into cancellation of the earlier cover note issued by opposite party No.1.

10.     From the aforesaid discussion, it emerges that the complainant has been able  to prove his case for refund of amount paid for the insurance of vehicle i.e. Rs. 49807/-. Opposite party No.2 is held deficient in service because the earlier cover note has been cancelled due to non payment of insurance charges  which the complainant paid to opposite party No.2 at the time of purchase of vehicle. As such, the instant complaint succeeds and opposite party No.2 is directed to refund the amount of Rs. 49,807/- to the complainant.  As the complainant did not avail the facility of No claim bonus due to cancellation of earlier policy to the tune of Rs. 10000/- , as such complainant is entitled to compensation to the tune of Rs. 5000/- and litigation expenses to the tune of Rs. 2000/-. Compliance of this order be made within a period of 30 days from the date of receipt of copy of order ; failing which, the complainant shall be entitled to get the order executed through the indulgence of this Forum. Case could not be disposed of within the stipulated period due to heavy pendency of the cases in this Forum. Copies of the order be furnished to the parties free of costs. File is ordered to be consigned to the record room.

Announced in Open Forum

Dated: 22.02.2017.