Final Order / Judgement

(Passed on 03/05/2023)

Per Mr. Atul D. Alsi, Hon’ble President.

1. The complainant filed a complaint case against non- disbursement of insurance claim of total loss of of vehicle Rs. 6,01,000/- along with interest and compensation.
2. The complainant is owner of Hyundai I20 Sports car bearing No. MH34/BF4382 for the period between 08/03/2019 to 07/03/2020 bearing policy number 231120268537-5200000 for the insured value of Rs. 6,01,000/-.
3. On 12/04/2019, the complainant was going from Chandrapur to Maihar (Madhya Pradesh). At about 7.30 pm, the driver of the vehicle lost control of the vehicle to save pit hole of road and at that time the truck coming from opposite direction gave sudden dash to the complainant’s vehicle. The complainant lodged complaint with police station and intimation of accident was also given to the insurance company. On 13/04/2019, the accidental vehicle sent for repairs. The OP/insurance company appointed surveyor and inspected the vehicle but on 12/06/2019, the OP has without assigning any reason, arbitrarily cancelled the insurance policy of complainant.  The non-disbursement of insurance claim and arbitrarily cancellation of policy with knowing to save liability, the OP has committed unfair trade practice. Therefore, petition is filed.
4. The OP filed reply and denied allegation and submitted that the OP admitted in reply that insurance claim of complainant’s damaged vehicle came to be registered with OP bearing claim no. C230019025600 and OP has also appointed surveyor to investigate the loss. The OP admitted that on 12/06/2019, the complainant’s insurance claim came to be rejected for furnishing false information in respect of incident of accident and therefore the policy issued on 12/04/2019 to the complainant has also been cancelled . The story of incident and impact of accident on car is different. Therefore, the complainant’s claim for submission of false information has not been repudiated and also the insurance policy has been cancelled. Therefore, there is no unfair trade practice on the part of OP. Hence case is liable to be dismissed with cost.
5. Counsel for complainant, advocate Mr. Abhay Kullarwar argued that on 12/04/2019, the complainant’s vehicle met with an accident and written report has been given to police station, Chapra (Madhya Pradesh) as per letter issued by Police Station Officer, Chapra stating that the written report has been received at Police Station on 13/04/2019. After accident, the intimation to OP was given and thereafter, surveyor was appointed but the OP has arbitrarily repudiated the insurance claim in respect of incident of accident  and impact of damaged to vehicle and therefore it amounts to unfair trade practice and moreover cancellation of insurance policy without intimation  to avoid insurance liability amounts to unfair trade practice.
6. Counsel for OP No. 2, argued that after investigation report, the incident of accident and damaged to vehicle does not co-relate. Therefore, due to suppression of material fact of incident of accident the claim is repudiated and the policy has also been cancelled for suppression of fact. Therefore, there is no unfair trade practice on the part of OP.

REASONING

7. On 12/04/2019, the complainant along with family were going from Chandrapur to Maihar (Madhya Pradesh). At about 7.30 pm, within jurisdiction of Police Station, Chapra, the vehicle met with an accident while saving pithole of road. The intimation of accident was given to insurance company immediately. The written report of accident was also given on 13/04/2019 to the Police Station as per station diary entry copy filed by police station of Chapra, district Seoni (Madhya Pradesh). As per letter field on record by Police Station Officer, Chapra and accordingly crime has been registered bearing crime No. 12/2019 at Chapra Police Station, District Seoni (Madhya Pradesh) in respect of  the accident caused to the vehicle bearing No. MH34/BF4382.
8. The complainant’s insurance claim has not been disbursed for the reason of the damage has not been occurred to the complainant’s vehicle as per story narrated by complainant. The report without recording the statements of eye witnesses or persons of nearby locality and the duty officer of police station due to non availability, hence, the report is one sided and therefore cannot be considered as cogent and reliable evidence in the present case at hand. As per statement of complainant, the  accident occurred due to dash given by unknown truck and the damages as per photographs are clearly seen the impact of accident. The accident is unforeseen act and after accident no one can make the correct conclusion of mode and manner of accident except the eye witness to the incident. Therefore, non-disbursement of insurance claim thus amounts to unfair trade practice. Therefore, the complainant is entitled to insurance claim of Rs. 6,01,000/- towards total loss of car along with Rs. 15,000/-towards compensation for physical and mental harassment  and cost of litigation of Rs. 10,000/- as per following order. The OP Nos. 2 and 3 has no role in adjudication of insurance claim. Hence, no order has been passed against them.

ORDER

1. The complaint is partly allowed.
2. The OP shall No. 1 shall pay insurance claim of Rs. 6,01,000/- to the complainant.
3. The O.P. Nos. 1 directed to pay to the complainant compensation of Rs. 25,000/- towards physical and mental torture and cost of litigation  of Rs. 15,000/-.
4. No order is passed against OP Nos. 2 and 3.
5. Copy of order be furnished to both parties, free of cost.