Haryana

StateCommission

A/200/2015

ORIENTAL INSURANCE CO. - Complainant(s)

Versus

JAGJIT SINGH - Opp.Party(s)

J.P.NAHAR

11 Jan 2016

ORDER

STATE CONSUMER DISPUTES REDRESSAL COMMISSION, HARYANA,PANCHKULA

                                                 

First Appeal No.200 of 2015

Date of Institution:02.03.2015    Date of Decision: 11.01.2016

 

1. The Oriental Insurance Company ltd., Branch Office, Mohindergarh Road, Narnaul through its Branch Manager.
2. The Oriental Insurance Company Ltd., Asaf Ali road, New Delhi, through its Director.

Now both through their authorized signatory S.P.Singh, Regional Manager, LIC Building, Jagadhari Road, Ambala Cantt.

     …..Appellants

                                                Versus

 

Jagjit Singh S/o Sh.Sumer Singh @ Shamsher Singh, r/o Village Ranila,District Bhiwani (Haryana).

         …..Respondent

 

 

CORAM:   Mr. R.K.Bishnoi, Judicial Member.
                   Mrs.Urvashi Agnihotri, Member.

 

Present:-    Mr.J.P.Nahar, Advocate for the appellants.

Ms.Bhavna Grewal, Advocate counsel for the  respondent.

 

                                      O R D E R

 

URVASHI AGNIHOTRI, MEMBER:

 

1. The Oriental Insurance company Ltd.–OP is in appeal against the Order dated 25.11.2014 passed by the learned District Consumer Disputes Redressal Forum (for short ‘District Forum’), Narnaul, whereby the complaint of Jagjit Singh - Complainant has been allowed and OPs has been directed to pay Rs. 4,49,500/- as 75% of the IDV of the vehicle.
2. Briefly stated the complainant had purchased a Bolero vehicle bearing Regn. No.HR-641-A-4591 from Narnaul and got it insured with OP No.1 vide policy No.AMB 98133 for the period from 25.09.2010 to 24.09.2011. Complainant alleged that the said vehicle was stolen on 19.07.2011 from his rented house at Gurgaon and in this regard FIR No.100 dated 20.07.2011 under Section 380 IPC was registered with Police Station, Gurgaon. However, the Police could not trace the said vehicle and submitted untrace report in the court of JMIC, Gurgaon, which was accepted on 24.09.2012. All the required documents were sent to the OP for claim, but the claim of the complainant was not settled by the OPs, despite his repeated requests.
3. According to the OPs, the vehicle was insured as private vehicle and they had charged premium as a private vehicle. However, after purchase of the vehicle, the complainant converted the use of the same as taxi (commercial vehicle) and got it registered as commercial vehicle without intimation / permission and without paying any premium as such. As this was against the terms and conditions of the insurance policy, OP was not liable to pay the claim made by the complainant. According to OP, there was no deficiency in service or unfair trade practice on their part. However, the learned District Forum rejected the pleas raised by the OP and accepted the complaint vide order dated 25.11.2014.

 

4.

 

5. We have heard the learned counsel for the parties and have also gone through the record. It is evident on record that the complainant had got the vehicle insured with the OP for a specific period during the currency of which the theft took place. Theft of the vehicle was not denied by the insurance company. They have repudiated the claim only because the vehicle had been converted by the complainant from private use to commercial use, without paying any additional premium or informing the insurance company. We do not find any merit in this arguments of the OP, as the vehicle in question had been stolen and in the case of theft of vehicle breach of condition is not germane. This has been so held by the Hon’ble Supreme Court of India and has settled the law against the insurance company rejecting their plea for repudiating the claims of the genuine insured persons. Consequently, the appeal filed by the insurance  company is dismissed with no order as to costs.
6. However, to be fair to the appellant – insurance company, we direct that if the vehicle is recovered by the Police at a later date, they shall be entitled to take the delivery of the same from the Police.
7. The statutory amount of Rs.25,000/- deposited at the time of filing the appeal be refunded to the appellants against proper receipt and identification in accordance with rules, after the expiry of period of appeal/revision, if any.

 

January 11th, 2016

Mrs.Urvashi Agnihotri, Member, Addl.Bench

R.K.Bishnoi, Judicial Member Addl.Bench

S.K.