This is an appeal filed by appellant/org.opponent against the Judgment and award passed by the District Consumer Disputes Redressal Forum, Buldhana in Consumer complaint No.22/2007 dated 28/09/2007.

 

While allowing the complaint partly, District Consumer Forum, Buldhana directed the opponent to allow the claim of the respondent on non standard basis, along with 9% interest p.a. from 1.9.2005. Against this award National Insurance Company has come up in appeal.

The facts to the extent material may be stated as under:-

 

The complainant owned vehicle no.M.H.-28/C-2015. He had taken insurance policy from the National Insurance Company. The said vehicle met with an accident on Jalna to Deolgaon Raja on 29/4/2005. The accident was reported to the police station and Insurance Company. Insurance Company appointed the Surveyor, survey assessed the damages and Surveyor had decided the amount of compensation of Rs. 43,500/- payable to the complainant. In Survey’s report surveyor submitted the said vehicle was used as private vehicle at the time of accident and therefore National Insurance Company repudiated the said claim of complainant on the ground that at the time of accident the vehicle was used as fare paying passengers.

 

The District Forum after hearing both the parties passed an order directing appellant/original opponent Insurance Company to pay compensation on non standard basis and to pay the interest @ 9% on the amount within 45 days from the date of receipt of the order. Hence this appeal filed by the Insurance Company (original opponent).

 

We heard both the Advocates.

Admittedly, the respondent had taken insurance cover from the appellant for the accident vehicle. The policy number is 270605/91/04/6100007194 and the policy was in force from 10/12/2004 to the midnight of 09/12/2005. Admittedly, the said vehicle met with an accident on 29/4/05 while traveling from Jalna to Deolgaon Raja.  Accordingly the F.I.R. was registered and the respondent had submitted the claim to the appellant/original opponent Insurance Company. The appellant/original opponent Insurance Company had appointed the Surveyor for assessing the damage of the vehicle who submitted Survey report on 3.05.05 by fixing the amount of compensation of Rs.43,500/- on net loss basis.

 

The Learned  Advocate for the appellant had vehemently contended that the policy is for Comprehensive Private Car Motors, however at the time of accident it was carrying fare paid passenger which was the breach of the policy terms and condition. As such National Insurance Company repudiated claim of the complainant.

 

We are finding that after accident the respondent had deposited all document with insurance company. Insurance company was recommended by the surveyor to pay Rs.43,500/- to the complainant. However Insurance Company did not pay amount to the respondent which in itself amounts to deficiency in service. Insurance Company is relying on police statement and FIR recorded by police after the accident. The statement recorded by police officer during the investigation u/s.161 of Cr.P.C. can not be read in evidence for the benefit of Insurance Company. They had not filed affidavit of any passenger from the accident vehicle to prove that vehicle was used for fare paying passengers. As such the repudiation of claim by the Insurance Company was improper.

 

 From the aforesaid facts it is clear that there is deficiency in service on the part of appellant/original opponent-Insurance Company. However District Forum after going through the evidence adduced by both the parties has passed the impugned order. It is per se bad in law  in as much as the surveyor had assessed loss of the complainant to his vehicle at Rs.43,500/- or recommended. Insurance company amount of Rs.43,500/- payable to the complainant. That amount should have been awarded as compensation to the respondent by the District Consumer Forum, But the learned District Forum altogether took a strange  stand that complainant be paid claim on non standard basis. This is not just and improper.   Normally District forum must accept recommendations made by the surveyor in his survey report. Since he is expert in assessing damages.

Thus by allowing this appeal partly we are inclined to award Rs.43,500/- as damages to the complainant towards Insurance claim lodged by the complainant, in place of order passed by District Forum in its impugned award. Hence we pass the following order.