Tamil Nadu

South Chennai

CC/238/2013

S.T.Srinivasa Raja - Complainant(s)

Versus

Corporate Motor Claims Rayal Sundaram Alliance Insurance Company Ltd., - Opp.Party(s)

Party in Person

03 Jan 2019

ORDER

                                                                        Date of Filing  : 02.07.2013

                                                                          Date of Order : 03.01.2019

 

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHENNAI (SOUTH)

@ 2^ND Floor, Frazer Bridge Road, V.O.C. Nagar, Park Town, Chennai – 3.

 

PRESENT: THIRU. M. MONY, B.Sc., L.L.B, M.L.                    : PRESIDENT

TR. R. BASKARKUMARAVEL, B.Sc., L.L.M., BPT., PGDCLP., : MEMBER-II

 

C.C. No.238/2013

DATED THIS THURSDAY THE 03^RD DAY OF JANUARY 2019

                                 

S.T. Srinivasa Raja,

S/o. Mr. Thulasirama Raja,

No.170, Sankarankoil Road,

INTUC Nagar,

Rajapalayam – 626 117,

Virudhunagar District.                                                  .. Complainant.                                                   

 

                                                                                                 ..Versus..

 

The Manager,

Corporate Motor Claims,

Royal Sundaram Alliance

Insurance Company Ltd.,

Sundaram Tower,

Nos.45 & 46, Whites Road,

Chennai – 600 014.                                                 ..  Opposite party.

          

 

Counsel for complainant            :  M/s. K. Ayyalusamy & others

Counsel for the opposite party  :  M/s. M.B. Gopalan & others

 

ORDER

THIRU. M. MONY, PRESIDENT

       This complaint has been filed by the complainant against the opposite parties under section 12 of the Consumer Protection Act, 1986 praying to pay insurance claim amount of Rs.1,80,000/- to the complainant for damage his vehicle and to pay a sum of Rs.50,000/- towards compensation for the complainant suffered mental and physical pain with cost to the complainant.

1.    The averments of the complaint in brief are as follows:-

The complainant submits that he is the owner of L.M.V. Maruthi car bearing Registration No.TN 67 K 7206 purchased through Hire Purchase Agreement with ICICI Bank, Theni Road, Madurai.   The complainant submits that he insured the vehicle with the opposite party, insurance company for the value of the vehicle Rs.1,87,736/- and paid a sum of Rs.14,432/- towards premium for the period from 03.01.2009 to 02.01.2010.  The complainant installed CNG/LPG kit also in the vehicle and was duly registered by the Assistant Registering Authority, Unit Office, Srivilliputtur and due endorsement made in the Registration Certificate which is duly recorded in the insurance policy.  The opposite party issued the insurance policy No.MP40256172 to the vehicle on 24.12.2008. The complainant submits that on 04.11.2009 at about 05.30 p.m., the vehicle got fire due to the leakage of petrol when the driver of the complainant Thiru. R. Shanmugavel started the vehicle.  Immediately, the matter was informed to the police, fire service and the insurance company.   The fire service of Rajapalayam rescued the vehicle by put off the fire by using fire engine.  The matter was published in the news paper also.  The police also registered the case.   The complainant submitted the claim form to the opposite party viz insurance company the same was repudiated by the opposite party.   Hence, the complainant issued legal notice to the opposite party dated:08.09.2010 for which, the opposite party has not sent any reply notice to the complainant.  Intimation was also given to the insurance company.   The opposite party is liable to pay insurance claim amount of Rs.1,80,000/- to the complainant.  The act of the opposite party amounts to deficiency of service and great mental agony.    Hence, the complaint is filed.

2.      The brief averments in the written version filed by the  opposite party is as follows:

The opposite party specifically denies each and every allegation made in the complaint and puts the complainant to strict proof of the same.     The the opposite party states that the claim of the complainant was repudiated on 07.12.2009.  The complaint is filed on 02.07.2013 after more than 3½ years.  Hence, this case is hopelessly barred by limitation.   The opposite party states that the complainant availed insurance policy and renewed the same for his Maruthi Omni vehicle having a petrol engine vehicle without being informed of any CNG/LPG kit attached.    The opposite party states that installation of CNG / LPG kit is a material alteration which affects the risks and it requires additional premium.  The complainant has suppressed the material fact of non-disclosure of the LPG was added by altering the vehicle long after registration which was however not intimated to the opposite party.  It is specifically denied that LPG endorsement in the RC Book was informed to the opposite party.  The opposite party states that the opposite party has appointed an IRDA licensed Surveyor u/s 64 UM of Insurance Act, 1938 who inspected the vehicle and filed his report admitting that the damage by fire caused due to fuel leakage and there was a total damage.  Therefore, there is no deficiency in service on the part of the opposite party and hence, the complaint is liable to be dismissed.

3.     To prove the averments in the complaint, the complainant has filed proof affidavit as her evidence and documents Ex.A1 to Ex.A8 are marked.  Proof affidavit of the opposite party is filed and documents Ex.B1 & Ex.B2 are marked on the side of the opposite party.

4.      The points for consideration is:-

1. Whether the complainant is entitled to a sum of Rs.1,80,000/- towards the value of the damaged vehicle as prayed for?
2. Whether the complainant is entitled to a sum of Rs.50,000/- towards compensation for mental agony, deficiency in service etc as prayed for with cost?

5.      On point:-

The written arguments of the opposite party filed.  The complainant has not filed any written arguments and not turned upto to advance any oral arguments also.  Heard the opposite party’s Counsel.  Perused the records namely the complaint, written version, proof affidavits and documents.   The complainant pleaded and contended that he is the owner of a Maruthi car bearing Registration No.TN 67 K 7206 purchased through Hire Purchase Agreement with ICICI Bank, Theni Road, Madurai.  Ex.A2 is the Registration Certificate.  The complainant further pleaded and contended that he insured the vehicle with the opposite party insurance company as per Ex.A1, the policy of insurance for the value of the vehicle Rs.1,87,736/- and paid a sum of Rs.4,707/- towards premium for the period 03.01.2009 to 02.01.2010.  The complainant installed CNG/LPG kit also in the vehicle and was duly registered by the Assistant Registering Authority, Unit Office, Srivillaiputtur as per Ex.A3 and due endorsement made in the Registration Certificate, Ex.A2 which is duly recorded in the insurance policy

INSURED’S DECLARED VALUE

Vehicle	Non-Elec accessories	Elec accessories	CNG/LPG kit	Total Value (IDV)
187736	0	0	0	187736

 

6.     Further the contention of the complainant is that on 04.11.2009 at about 05.30 p.m., the vehicle got fire due to the leakage of petrol when the driver of the complainant Thiru. R. Shanmugavel started the vehicle.  Immediately, the matter was informed to the police, fire service and in the insurance company.   The fire service of Rajapalayam rescued the vehicle by put off the fire by using fire engine.  The matter was published in the news paper also.  The police registered a case as per Ex.A6.   The complainant submitted the claim form to the opposite party insurance company.  The same was repudiated by the opposite party.   Hence, the complainant issued legal notice as per Ex.A8 for which, the opposite party issued a reply with untenable contentions because the accidental fire was happened during the subsistence of policy.  Due intimation also given to the insurance company.  The only contention raised by the opposite party is that the installation of LPG was not duly assessed and premium paid; is not acceptable because the registering authority accepted the installation of CNG/ LPG and due endorsement made.   Equally, the policy also showing the details of installation of CNG/LPG.   As per the terms and conditions of the policy Ex.B1, it is very clear that the liability column shows fuel kit CNG/LPG.   The terms and conditions having the endorsement which reads as follows:

(Only the Endorsements mentioned in the Schedule shall form part of policy)

IMT. 1. EXTENSION OF GEOGRAPHICAL AREA

In consideration of the payment of an additional premium of Rs.......... it is hereby understood and agreed that notwithstanding anything contained in this Policy to the contrary the Geographical Area in this Policy shall from this ........../............./.............. to the .../...../.......(both days inclusive) be deemed to include

It is further specifically understood and agreed that such geographical extension excludes cover for damage to the vehicle insured / injury to its occupants / third party liability in respect of the vehicle  insured during sea voyage / air passage for the purpose of ferrying the vehicle insured to the extended geographical area.

Otherwise subject to the terms and conditions and limitations of this policy.

NOTE: Insert Nepal / Sri Lanka / Maldives / Bhutan / Pakistan / Bangladesh as the case may be”.

Like wise, IMT 25 CNG/LPG KIT In BI-FUEL SYSTEM

(Own Damage cover of the kit)

In consideration of the payment of premium as stated in the Schedule notwithstanding anything to the contrary contained in the Policy it is hereby understood and agreed that the Insurer with indemnify the Insured in the Terms Exceptions Conditions and limitations of Section 1 of the Policy against Loss and / or Damage to the CNG LPG kit fitted in the Private Car Insured arising from accidental Loss or Damages to the Private Car Insured subject to the limit of the Insured a Declared Value of the CNG / LPG kit specified in the Schedule of the Policy”.

 establishes that after due knowledge of the installation of LPG the policy was issued for the value of the vehicle Rs.1,87,736/-.  The repudiation of the claim by the opposite party amounts to deficiency in service and unfair trade practise during the subsistence of policy covering damage by fire.   

7.     The learned Counsel for the opposite party would contend that the claim of the complainant was repudiated on 07.12.2009.  The complaint is filed on 02.07.2013 after more than 3½ years.  Hence, this case is hopelessly barred by limitation.  But on a careful perusal of records, it is seen that as per CMP No. 237A/2013 dated:30.07.2013 the delay of 533 days in representation was allowed.   Thereby, the claim is within the time.  Further the contention of the opposite party is that the complainant availed insurance policy and renewed the same for his Maruthi Omni vehicle having a petrol engine vehicle without any CNG/LPG kit attached.  But on a careful perusal of the policy Ex.A1, Ex.B1 and the terms and conditions proves very clearly that at the time of availing policy the LPG kit was installed in the impugned car.  Further the contention of the opposite party is that installation of CNG / LPG kit is a material alteration which affects the risks and it requires additional premium.  But on a careful perusal of Ex.B1 Certificate of Insurance column B liability

B - LIABILITY	Premium in Rs.
Basic Premium including premium for TPPD Less: For restricted TPPD cover for Rs.6,000/- (IMT20) Bi – Fuel Kit (CNG / LPG)	670.00 0.00 0.00
ADD: Personal Accident Benefits a. Under section III (Owner Driver), CSI Rs.200.00 b. Unnamed passengers, CSI Rs.50,000.00 each (IMT16) c. PA Cover to Paid Driver, CSI Rs.0.00 (IMT17)	100.00   200.00 0.00
ADD: Legal Liability To paid Driver (IMT 28) To paid Employees (IMT 29) Number of Employees 8	25.00   0.00
TOTAL LIABILITY PREMIUM (B)	995.00
NET PREMIUM (A+B) Add: Service Tax Education Cess	4,189.00 517.76 0.00
TOTAL PREMIUM PAYABLE	4,706.76

 

Establishes that the opposite party has not collected any premium.   Equally in terms and condition IMT 25 CNG/LPG KIT In BI-FUEL SYSTEM

(Own Damage cover of the kit)

In consideration of the payment of premium as stated in the Schedule notwithstanding anything to the contrary contained in the Policy it is hereby understood and agreed that the Insurer with indemnify the Insured in the Terms Exceptions Conditions and limitations of Section 1 of the Policy against Loss and / or Damage to the CNG LPG kit fitted in the Private Car Insured arising from accidental Loss or Damages to the Private Car Insured subject to the limit of the Insured a Declared Value of the CNG / LPG kit specified in the Schedule of the Policy”.

Hence it is proved that the opposite party is liable for such damage.  Further the contention of the opposite party is that the opposite party appointed an IRDA licensed Surveyor u/s 64 UM of Insurance Act, 1938 who inspected the vehicle and filed his report admitting that the damage by fire caused due to fuel leakage and there was a total damage.  But contradictory to the terms and conditions the surveyor noticed the installation of LPG by material alteration and assessed the damages to the tune of Rs.1,67,388/-.  The opposite party against the terms and conditions of the policy repudiated the claim without any substantial reason which amounts to deficiency in service. Considering the facts and circumstances of the case this Forum is of the considered view that the opposite party shall pay a sum of Rs.1,67,388/- being the value of the vehicle after due depreciation with a compensation of Rs.35,000/- and cost of Rs.5,000/-.

  In the result, this complaint is allowed in part.   The opposite party is  directed to pay a sum of Rs.1,67,388/- (Rupees One lakh sixty seven thousand three hundred and eighty eight only) being the value of vehicle after due depreciation and to pay a sum of Rs.35,000/- (Rupees Thirty five thousand only) towards compensation for mental agony with cost of Rs.5,000/- (Rupees Five thousand only) to the complainant.

The aboveamounts shall be payablewithin six weeks from the date of receipt of the copy of this order, failing which, the said amounts shall carry interest at the rate of 9% p.a. to till the date of payment.

Dictated  by the President to the Steno-typist, taken down, transcribed and computerized by her, corrected by the President and pronounced by us in the open Forum on this the 03^rd day of January 2019. 

 

MEMBER-II                                                                PRESIDENT

 

COMPLAINANT SIDE DOCUMENTS:-

		Copy of Insurance Certificate cum Policy Schedule
		Copy of Certificate of Registration
		Copy of ‘B’ Registrar Extract of the Vehicle
		Copy of Thinagaran News Paper published the Photo of the complainant’s vehicle along with fire service
		Copy of the receipt given by the Rajapalayam Inspector to the complainant
		Copy of the accident certificate given by the Rajapalayam Inspector of Police to the complainant
		Copy of letter from the opposite party to the complainant
		Copy of legal notice issued to the opposite party along with acknowledgment card

 

OPPOSITE  PARTY SIDE DOCUMENTS:-

Ex.B1		Copy of Insurance Policy
Ex.B2	09.11.2009	Copy of Survey Report

 

 

MEMBER-II                                                                PRESIDENT