Before the District Consumer Dispute Redressal Commission [Central District] - VIII, 5th Floor Maharana Pratap ISBT Building, Kashmere Gate, Delhi
Complaint Case No.188 /dated 26.09.2018
Sh. Narayan Dutt Tiwari s/o Sh. Chandra Shekar Tiwari
R/o 180A, Ground Floor, Gauda Niwas, Hari Nagar, Ashram,
Sun Light Colony, Delhi-110014 …Complainant
Versus
ICICI Lombard General Insurance Company Limited.
At –Videocon Tower, 6th Floor, Block E-1, Jhandewalan Exten.
New Delhi-55
Regd. Office at: Unit No. 1904, 19th Floor, Parinee Crescenzo,
G-Block, Bandrakurla Complex, BKC Road, Near MCA Club,
Bandra East, Mumbai-400051 …Opposite Party
Date of filing 26.09.2018 Date of Order: 23.10.2023
Quorum: Shri Inder Jeet Singh, President
Shri Vyas Muni Rai, Member
ORDER
Inder Jeet Singh , President
1.1. (Introduction to dispute) –The complainant has grievance against the OP that on 24.04.2017, he had purchased Mahendra SUV 500 bearing registration no. DL-12 CL2000 (hereinafter referred as the vehicle) from its registered owner Bhawani Dutt Joshi against consideration and immediately possession of the vehicle was taken on 26.04.2017 as well as information was given to the OP about purchase of the vehicle and to transfer the insurance policy of vehicle in the name of complainant. The complainant was advised that it may be on eve of renewal of policy. After getting the vehicle transferred in the name of complainant, he again requested with copy of RC to the OP to issue insurance policy in the name of complainant. However, unfortunately the vehicle met with an accident but OP failed to settle the valid claim of damages happened to the vehicle on the one pretext or the other. That is why there was deficiency of services and complaint was filed for appropriate direction to the OP to pay Rs. 4,77,800/- being cost of repairs of damaged vehicle along with interest at the rate of 24% pa from the date of accident till the realization of the amount apart from compensation of Rs. 2 lakh on account of trauma and harassment faced, besides Rs. 5500/- for legal notice charges and Rs. 55,000/- cost of litigation.
1.2 Initially, complainant was instituted against Bharti Axa General Insurance Company Limited and its Manager, who filed an application and the name present OP was impleaded by order dated 20.12.2022 as ICICI Lombard General Insurance Company Limited, since Bharti Axa General Insurance Company Limited stand merged into the present OP. Accordingly, the array of OP is reflecting the name of 'ICICI Lombard General Insurance Company Limited'.
1.3 The OP had not filed any reply but it appeared with an offer to settle the claim and to pass appropriate order to this effect. As per proceedings dated 22.4.2022 r/w other proceedings dated 9.5.2019, an amount of Rs.4,12,282/- was offered (as lump sum amount without interest component) for full and final settlement of claim, however, it was not acceptable to the complainant because of claimed amount involved.
2.1. (Case of complainant) –The complainant bought vehicle from its registered owner on 24.04.2017 against sale consideration of Rs. 8 lakhs and also took its possession 26.04.2017. The complainant as well as the seller of the vehicle informed the OP at its customer care, besides providing sale document, with request to OP to transfer insurance policy in favour of complainant. The documents were provided through e-mail. However, OP’s representative/officials represented that there is no need to seek transfer of policy for the existing tenure and it can be at the time of renewal of policy for further term. The OP’s official asked to provide sale document to RTO, transfer application receipt for issuing NCB certificate and for future sale record. Further, the complainant applied for transfer of vehicle with the concerned RTA, Mall Road, Delhi and on receipt of RC in his name, the complainant provided its copy to the OP through mail and also requested the OP to transfer the insurance policy in the name of complainant. However, the OP has not done anything except suggesting that transfer will be done at the time of renewal of policy for further term and for NCB to be issued in the name of erstwhile owner.
2.2. Unfortunately, the vehicle met with a major road accident on 29.11.2017, when driver made an attempt to save cow but vehicle colluded with small bridge (pulia) in village Baidad, District Sonbhadra, UP. The driver of the vehicle was removed to hospital. Police was also informed and reported in writing to register the FIR. The incident was also reported to the then OP (erstwhile Bharti Axa General Insurance Company Ltd.) and claim no. 17M01JE3 was generated by the OP.
The vehicle was taken to M/s Agarwal Auto Sales, Armura, Pipri Road, Robert Ganj, UP for necessary repairs. The surveyor appointed by the then OP visited and surveyed the matter, he made all the formalities completed and also approved for repairs, then repair was started by M/s Agarwal Auto Sales, who took about three months to complete repairs of the vehicle. During the phase of repairs, the OP remained continuously in touch with the M/s Agarwal Auto Sales to monitor it but OP declined the cashless claim and asked the complainant to pay entire repairs charges from his own pocket and then to submit the claim. The complainant was left no option to pay the repairs bills, the complainant spent an amount of Rs. 4,77,800/- on repairs and thence claim file was prepared by field team of the then OP.
2.3. Since the repairs bills were on very high side, the complainant was pursuing his claim regularly, the complainant was assured that the claim will be settled in one month and thereafter the claim was sent for final payment to process team in March 2018-last week. The complainant has been following the matter with the OP and OP admits receipt of information of sale of vehicle as well as receipt of documents but OP came forward with plea of Indian Motor Vehicle Act GR17 that owner of the vehicle should inform the insurer for transfer of ownership within time frame of 14 days. The OP is taking inconsistent stand that on the one side, it admits that documents of sale has been received with request of transfer of policy but on the other side taking the plea of GR17; the OP is blowing hot and cold simultaneously to deprive the valid claim of complainant. The OP was informed in time immediately after purchase of the vehicle by furnishing sale document with request to transfer the insurance policy in his name and after transfer of RC of in his name, again OP was informed with copy of RC to transfer the policy in his name. The complainant also wrote detailed email dated 04.06.2018 and he also sent legal notice dated 12.06.2018 and on discovery of other address of OP, fresh legal notice was sent on 17.08.2018 while claiming the repairing bills along with interest and other claim tenable under the law, inclusive compensation and damages.
The OP is taking frivolous defense of GR17. The complainant refers section 157(1) of Motor Vehicle Act 1988 which reads as -
“where a person in whose favour the certificate of insurance has been issued in accordance with the provision of this chapter transfer to another person the ownership of the motor vehicle in respect of which such insurance was taken together with the policy of insurance relating thereto, the certificate of insurance and the policy described in the certificate shall be deemed to have been transferred in favour of the person to whom the motor vehicle is transferred with effect from the date of its transfer. Explanation-for the removal of doubts, it is hereby declared that such deemed transfer shall include transfer of rights and liabilities of the said certificate of insurance and policy of insurance.”
2.4. Therefore, there is deficiency of services and OP failed to render quality of service as assured, while taking the policy and the complainant was put to trauma of harassment for which it is liable to pay compensation in lieu of mental, financial, physical harassment. The complainant is entitled for the relief claim.
2.5. The complaint is accompanied with photocopy of complainant’s Aadhar card, RC in his name, insurance policy (in the name of Bhawani Dutt Joshi), letter dated 25.05.2017 for NCB, copy of letter dated 09.12.2017 written to Police, receipts issued by Agarwal Auto Sales, copies of cheque of Rs. 1 lakh and another cheque of Rs. 3,75,558/- both in favour of Agarwal Auto Sales, bill/tax invoice of Rs. 4,71,305/- issued by Agarwal Auto Sales, the email exchanged with the OP, inclusive of denial of claim by the OP, copy of legal notice dated 12.06.2018 and 17.08.2018 to the then OP.
2.6. It is relevant to mention here that OP had not filed reply but offer letter was placed on file which find mentioned in the proceedings dated 09.05.2019, while offering amount of Rs.4,12,282/- as amount of settlement.
3. (Evidence)-The complainant led his evidence by filing affidavit, which is on the lines of complaint, having support of documents filed with the complaint.
4. (Final hearing)-The complainant filed brief written arguments followed by oral submission by Sh. Anand Vardhan Maitryan, Advocate for complainant. The submissions are hybrid of pleading, evidence and proceedings that at one point of time, even an amount was offered by the OP, however, it was not inclusive of all component despite valid claim of complainant, he was constraint not to accept that amount, which was lesser than the amount he is entitled for.
5.1 (Findings)-The contentions are considered keeping in view the facts, features and documents on record. There is no reply by the OP, nor any evidence. However, still, burden to prove the case is on the complainant.
5.2. By taking into account, totality of circumstances and record the following conclusions are drawn:-
(i) The complainant has proved that immediately after purchasing the vehicle on 24.04.2017, its possession was taken on 26.04.2017 and the OP was informed with document of purchase of vehicle with request to transfer the insurance policy in his name from the name of seller. Moreover, after transfer of vehicle in the name of complainant by RTA, OP was again informed to the OP with copy of RC in the name of complainant to transfer the insurance policy in his name. It was not done by OP.
(ii) The OP’s representative/officials asked the complainant, on both occasions, that the insurance policy will be in his name on the eve of further renewal.
(iii) In view of (i) and (ii) above, it establishes that complainant had performed his obligation and duties to inform the insurer for appropriate endorsement in the policy but the OP took cognizance of purchase of vehicle by complainant but it had not issued endorsement in the name of complainant. These aspects remained unchallenged and un-rebut on the part of OP. Thus, would not deprive the locus standi of the complainant.
(iv) It appears that OP had concentrated that subject matter is vehicle and it is insured irrespective the name of policy holder.
(v) The complainant has insurance policy no. S8572356 w.e.f. 20.02.2017 to 19.02.2018 and the accident had happened on 29.11.2017, during the currency of insurance policy and vehicle is subject matter of the policy. The complainant has also proved that the repairs were got done from M/s Agarwal Auto Sales, the complainant paid the repairs bill of Rs. 4,77,800/-.
The erstwhile OP had appointed surveyor, who inspected the vehicle and the surveyor might have furnished the report but OP has not filed that report with the proposed settlement or otherwise vis-à-vis the complainant was not provided with the copy of surveyor report, as appearing in the evidence. To say, the testimony of the complainant remained unchallenged.
(vi) The OP had also offered amount as lump sum settlement by recognizing the subject vehicle under insurance cover as well as complainant had purchased it, besides the complainant had informed the OP about purchase of vehicle & also requested for transfer of insurance policy.
(vii) The vehicle was insured for IDV of Rs. 6,04,149/-as per insurance policy proved by the complainant and the repairs charges/bills of Rs. 4,77,800/- proved are within the limit of sum insured of Rs. 6,04,149/-.
5.3. Therefore, in view of the above, it is held that circumstances proves case of complainant of repairs of accidental vehicle and complainant had suffered amount of Rs. 4,77,800/- for repairs, which entitles him for amount of Rs.4,77,800/- (which is within the IDV of sum assured amount), so it is allowed in favour of complainant and against OP.
5.4 The complainant also claim interest of 24% pa, however, there is no agreed date of interest, therefore, interest @ 6% pa from the date of complaint till realization of amount in favour of complainant and against OP will meet both ends.
5.5 The complainant has claimed compensation of Rs.2,00,000/-. The compensation has been claimed in lieu various difficulties, inconvenience and hardship, while approaching the OP from inception of purchase of vehicle, approaching the OP to insert his name in the insurance policy, before and after transfer of registration certificate in his name but it was not done by OP and subsequently for reimbursement of valid claim of accidental loss, which was also declined by OP. The complainant had also sent legal notice prior to filing of complaint. However, during the proceeding of complaint, the OP offered lump-sum amount of compensation without interest, it was not accepted by the complainant. By taking into account the situation, the complainant is held entitled for compensation of Rs.20,000/- in his favour and against the OP. Moreover, cost of Rs. 10,000/- is also determined and allowed in his favour and against OP.
5.6. Accordingly, the complaint is allowed in favour of complainant and against the OP to reimburse/pay repairing amount (of accidental damages to vehicle) of Rs.4,77,800/- along-with simple interest at the rate of 6%pa from the date of complaint till realization of amount besides compensation/damages of Rs.20,000/-and costs of Rs.10,000/-.
OP is also directed to pay the amount within 30 days from the date of receipt of this order. In case amount is not paid within 30 days from the date of receipt of order, the interest will be at the rate of 8% pa on amount of Rs.4,77,800/-.
8. Announced on this 23rd October 2023 [कार्तिक 1, साका 1945].
9. Copy of this Order be sent/provided forthwith to the parties free of cost as per rules for necessary compliance.
[Vyas Muni Rai] [Inder Jeet Singh]
Member President
