Andhra Pradesh

East Godwari-II at Rajahmundry

CC/72/2015

Valluri Srinivas - Complainant(s)

Versus

Magma Finance Corporation Limited, Rep. by its Branch Manager, - Opp.Party(s)

K. Nanda Kishore

30 Jun 2016

ORDER

                                                                                              Date of filing:   02.05.2015

                                                                              Date of Order:   30.06.2016

 

BEFORE THE DISTRICT CONSUMER FORUM-II, EAST GODAVARI

DISTRICT AT RAJAHMUNDRY

 

                      PRESENT:   Smt. H.V. Ramana, B.Com., LL.M.  …  PRESIDENT(FAC)                                            

                 Sri A. Madhusudana Rao, M.Com., B.L. … MEMBER          

    

              Thursday, the 30^th day of June, 2016

 

C.C.No.72 /2015

Between:-

 

Valluri Srinivas, S/o. Chiranjeevi, Hindu, aged 21 years,

Resident of Door No.64-7-23, Ananda Nagar, Ward No.9,

Rajahmundry, East Godavari District.                                                 …  Complainant

 

                                    And

 

1)  Magma Finance Corporation Limited, Rep. by its

     Branch Manager, Door No.79-2-9/3, 1^st Floor,

     Manda Valli Plaza, Tilak Road, Rajahmundry,

     East Godavari District.

 

2)  Magma HDI General Insurance Corporation Limited,

     Rep. by its Branch Manager, Tilak Road,

     Opp: Sai Baba Temple, Rajahmundry.                                          …  Opposite parties

 

 

 

 

            This case coming on 24.06.2016 for final hearing before this Forum in the presence of Sri P. Nanda Kishore, Advocate for the complainant and the opposite parties  having been set ex parte and having stood over to this date for consideration, this Forum has pronounced the following:  

O R D E R

(Per Sri A. Madhusudhana Rao, Member) 

The complainant filed this complaint under Section 12 of the Consumer Protection Act, 1986 to direct the opposite parties to pay Rs.19,00,000/- towards compensation for insurance claim and mental agony and award costs.

2.         The case of the complainant is that he is the owner of EICHER 11.10 model vehicle bearing registration No.AP05 TB 4956. The complainant with proposal No.PG/0090/ V12/0000027, hire purchase agreement was entered with the 1^st opposite party by the complainant. The complainant paid 2 installments to Magma Fin Corp. Ltd. While so, the subject vehicle was met with road accident on 28.12.2013 at Budhera Smsana Vatikala, NH-65 road resulting in death of vehicle driver and severe damage to the subject vehicle. A case in Crime No.112/2013 U/s 304-A, 337, 279 I.P.C. of Munipalli police station was registered against the driver of the vehicle bearing No.RJ 19 GA 7023. Immediately, the complainant informed to the opposite parties at the spot. After physical and mechanical verification, they opined that the vehicle was totally damaged. The vehicle was shifted to Rajahmundry Eicher showroom and placed in the workshop. The subject vehicle is under the hire purchase hypothecation agreement with the 1^st opposite party, the subject vehicle was validly insured with the 2^nd opposite party with Policy No.P 0014400002 4106/232306. The period of insurance is from 12.10.2013 to midnight 11.10.2014. The person namely Valluri Venkateswara Rao who drive the vehicle  bearing No.AP05 TB 4956 is having valid driving license to drive the vehicle AP05 TB 4956 at the time of accident. The accident was occurred due to rash and negligent driving of the driver of the lorry bearing No.RJ 19 GA 7023. Valluri Venkateswara Rao also died due to the accident. The complainant sustained huge loss and is not in a position to pay the installment amounts because of total damage to the vehicle. The complainant requested the opposite parties to pay the insurance claim amount pertaining to vehicle bearing No.AP05 TB 4956. The personnel of the  1^st opposite party are making threats and demanding the complainant to pay the amount covered under the agreement. The complainant sent registered letter dt.15.5.2014 to the opposite parties 1 and 2 and requested them to pay the insurance claim amount. The opposite parties having received the legal notice failed to comply the demand. Hence, the complaint.   

3.         The opposite parties initially represented by an advocate, but later did not turned up subsequently, so, called absent and hence, set ex-parte.

4.         Heard the complainant. The proof affidavit filed on behalf of the complainant Exs.A1 to A13 are marked for the complainant.

5.         Points raised for consideration are:

 

1. Whether there is any deficiency in service on the part of the opposite parties?

            2. Whether the complainant is entitled for the reliefs asked for?

3.  To what relief?

           

 

6.   Point Nos.1 & 2:-   As seen from the record, the complainant herein purchased Eicher 11.10 goods vehicle of 2013 model with registered No.AP05TB4956 with the A.P. State Transport Department and obtained Transport permit valid upto 21.10.2018 as per Ex.A6. The said vehicle was also issued Fitness certificate by the Transport Department valid upto 18.10.2015. The complainant purchased the said goods vehicle under Hire purchase agreement vide the proposal No.PG/0090/V/12/000027 for an amount of Rs.11,14,868/- from the 1^st opposite party finance company at Rajahmundry vide Ex.A10. The complainant obtained commercial vehicle class package policy for the above said Eicher vehicle from the 2^nd opposite party insurance company, which is valid from 12.10.2013 to midnight of 11.10.2014 and issued a cover note dt.23.10.2013 vide policy No.P00144000 2/4103/232306 and the insured’s declared value of the said vehicle is at Rs.12,12,955/- on payment of premium of Rs.36,304/- as per Ex.A5.

The said insured vehicle of the complainant was met with an accident on 28.12.2013 (Saturday) at 2.00 AM at Budhera village outskirts on NH-65 under Munipally Police station jurisdiction of Medak district, when a speeding lorry bearing No.RJ19 GA 7023 – proceeding towards Hyderabad dashed the complainant’s insured vehicle in a rash and negligent manner and the vehicle bearing No.AP05 TB 4956 along with another vehicle bearing No.AP36 Y 8429 got damaged. The driver of the insured vehicle bearing No.AP05 TB 4956 died at 3.30 hours while undergoing treatment at Government Hospital, Sangareddy and two buffalos were also died in the said accident and the police registered an F.I.R. vide No.112/2013 dated 28.12.2013 U/S 304A I.P.C., 337 I.P.C. and 279 I.P.C. against the driver of Lorry No.RJ 19 GA 7023 as per Ex.A2. Ex.A3 is the Postmortem report vide No.411/2013 in Crime No.112/2013 dt.28.12.2013 issued by the District Hospital, Sangareddy pertaining to the deceased driver of the insured vehicle by name V. Venkateswara Rao, S/o.Lazar and Ex.A4 is the Panchanama report of the deceased conducted by the Sub Inspector of Police, Munipally P.S., Medak District.

The complainant alleged that the factum of accident was informed to the  2^nd opposite party Magma HDI General Insurance Company along with the 1^st opposite party and after their physical and mechanical verification, the vehicle was shifted to Rajahmundry Eicher showroom where the 2^nd opposite party insurance company personnel surveyed the vehicle bearing No.AP05 TB 4956 and opined that the vehicle was totally damaged. The complainant submitted all the required documents and requested to pay the insurance claim amount pertaining to the damaged insured vehicle of the complainant. Further, the complainant alleged that as the 1^st opposite party finance company demanding for financed amount, the complainant with a view to pay the said amount after settlement of insurance claim got issued registered letter dt.15.5.2014 under Ex.A12 to both the opposite parties and the same were received by the both opposite parties vide acknowledgements under Ex.A13, but there was reply.   

We observed that the 2^nd opposite party Magma HDI General Insurance Company Limited informed the complainant to send load challan or Trip sheet, Police charge sheet and further requested to start the repairs to the vehicle in dispute as the matter is pending for the last six months and submit the bills accordingly, otherwise they will close the file vide Ex.A11 dated 4.7.2014. Further, we observed that the 2^nd opposite party also issued reminder dt.4.7.2014 to the complainant to renew the insurance policy under Ex.A1. So, it reveals that the 2^nd opposite party insurance company had already received the documents submitted by the complainant for settlement of his insurance claim and the claim is under process. The complainant filed this complaint on 2.5.2015 in this Forum and alleged that though the complainant submitted all the required documents for settlement of his claim, the 2^nd opposite party failed to settle his insurance claim, which amounts to deficiency in service on the part of the insurance company and as such, he could not pay the finance amount to the finance company and demanded for Rs.19,00,000/- towards compensation for insurance claim, mental agony and costs of the complaint.

But, as the opposite parties were not turned up to defend their case with any cogent material towards the actual loss occurred to the insured vehicle due to the said accident, we have no other option, but to agree with the contention of the complainant as per the facts and circumstances and in view of the material placed before this Forum in support of his complaint. However, the claim of the complainant is seemed to be highly inflated whereas the insured’s declared value of the vehicle at the time of taking the insurance policy is Rs.12,12,955/- and so, the complainant is entitled for this amount only with an interest as the claim was unsettled till this date by the 2^nd opposite party Magma HDI General Insurance company Limited. It is further observed that the insured vehicle was purchased under finance agreement with the 1^st opposite party Magma Fin Corp. Limited, the claim amount so payable by the insurance company i.e. 2^nd opposite party to the complainant is to be paid to the 1^st opposite party through the complainant to the extent of remaining balance of finance amount due to the 1^st opposite party Magma Fin. Corp. Ltd., by the complainant.

 

With the above said discussion, we are in the considered opinion that the 2^nd opposite party is liable for their deficient service towards settlement of claim of the complainant and liable to pay the insurance claim amount for the insured vehicle bearing No.AP05 TB 4956 of the complainant.                    

                                                

7.    Point No.3:-  In the result, the complaint is allowed partly, directing the 2^nd opposite party insurance company to pay the insured amount of Rs.12,12,955/- i.e. IDV of insured vehicle with interest @ 9% p.a. from the date of demand i.e. 15.05.2014 till realization to the complainant. We further direct the 2^nd opposite party to pay Rs.5,000/- towards  costs of this complaint to the complainant. The claim against the 1^st opposite party is dismissed. Time for compliance is two months from the date of receipt of copy of this order.             

 

Typed to dictation, corrected and pronounced by us in open Forum, on this the 30^th day of June, 2016.

      

        Sd/-                                                                                   Sd/-

      MEMBER                                                                  PRESIDENT(FAC)

 

 

APPENDIX OF EVIDENCE

WITNESSES EXAMINE

 

FOR COMPLAINANT:  None.                                 FOR OPPOSITE PARTIES:  None.

 

DOCUMENTS MARKED

 

FOR COMPLAINANT:

 

 

Ex.A1    Letter dt.4.7.2014 of Magma HDI General Insurance Co. Ltd. to Valluri

             Srinivas.

Ex.A2    FIR copy in Crime No.112/2013 of Munipalli P.S.

Ex.A3    Report of Post Mortem of deceased.

Ex.A4    Inquest Report.

Ex.A5    Certificate of Insurance issued by Magma HDI, General Insurance Co. Ltd.

Ex.A6    Registration certificate for the vehicle AP05 TB 4956.

Ex.A7    Certificate of fitness issued by M.V.I.

Ex.A8    Aadhar card of V. Venkateswara Rao.

Ex.A9    Driving License of V. Venkateswara Rao.

Ex.A10  Letter dt.26.10.2013 sent by Magma Fin. Corp. Limited to the complainant.

Ex.A11  Letter dt.4.7.2014 from Magma HDI General Insurance Co. Ltd., to the

              complainant.

Ex.A12  Office copy of legal notice dt.15.5.2014 got issued by the complainant to the

              opposite parties.

Ex.A13  Acknowledgements (2 No.’s)         

 

FOR OPPOSITE PARTIES :-     - Nil -  

 

 

         Sd/-                                                                                  Sd/-

      MEMBER                                                                  PRESIDENT(FAC)