13-07-2015- The reasons for delay in disposal of this appeal can be seen from the order sheets.
- Heard, the parties on the prayer for condoning the delay of about 50 days in filing this appeal.
On being satisfied with the grounds, the said delay is condoned.
- Heard the parties on merit.
Mr. D.C. Ghosh, learned counsel appearing for the O.P.- appellant- ( Insurance company for short) submitted as follows. As the valuation of the scrap i.e Rs. 96,000/- was not found proper, it was got re-valued by another surveyor who valued the scrap at Rs. 1,30,000/- and thereafter 25% was deducted for non submission of load/ road challan and Rs. 26,007/- was deducted as policy excess and premium adjustment and then the respondent- complainant was offered Rs. 7,75,368/-, which he refused to accept. He assailed the impugned order on various grounds. He also submitted that in any event the amount of compensation and rate of interest is on higher side.
- On the other hand, learned counsel for the complainant- respondent supported the impugned order.
- The learned District Forum rightly held that the value of the scrap had no concern with the payment of insurance amount, as the Insurance Company was at liberty to sell it in open market and therefore the Insurance Company wrongly delayed the settlement of claims. It also found that the complainant filed route / area permit of the vehicle, issued by the State Government and moreover there was no nexus between the road challan and the burning of the vehicle by a mob. It further found that the settlement of the insurance claim could not be delayed on the ground of submission of police final form. It further observed that the conduct of the Insurance Company can not be appreciated as it tried to force the complainant to accept unreasonable offer. It further observed that the Insurance Company was responsible for long delay and the complainant had to run from pillar to post. Accordingly it directed the Insurance Company to pay the insured value i.e. Rs. 12 Lakhs plus compensation of Rs. 4 Lakhs and cost of litigation- Rs. 10,000/- to the complainant within 60 days of the order, failing which the Insurance Company was also made liable to pay penal interest @ 18% per annum from the date of the order.
- The undisputed facts in short are as follows. The insured value of the vehicle in question was Rs. 12 Lakhs. The vehicle was burnt in a mob violence on 11.7.2005 about which an F.I.R. was lodged. Police submitted chargesheet. The Complainant informed the Insurance Company. A surveyor Mr. P.K. Sinha was appointed, who recommended for payment of the insured value. He assessed the value of the scrap at Rs. 96,000/- The complainant offered to purchase the scrap and requested to pay the balance amount i.e. Rs. 11,04,000/- After about one year the Insurance Company appointed another surveyor Mr. S.K. Sharma, who in his report dated 27.12.2006 assessed it at Rs. 1,30,000/- The Insurance Company deducted 25% of the assessed value as penalty for non-supply of road challan of the vehicle. It also deducted Rs. 26,007/- towards policy excess and premium adjustment. Thus it offered Rs.7,75,368/- on or about 2.6.2008, which the complainant refused to accept.
- According to the Insurance Company it was justified in appointing the second surveyor as according to it the scrap value was not correctly assessed by the first surveyor but there is no explanation why the second surveyor was appointed after about one year. We further find that the complainant produced road challan. Further the load challan had no nexus with the incident of the burning of the truck by the mob. Therefore, the Insurance Company was not justified in settling the claim on non-standard basis by deducting 25% of the assessed value.
- Thus, we do not find any merit in this appeal. However we modify the operative portion of the order in the following manner.
The Insurance Company will be at liberty to take possession and sell scrap. The Principal amount payable by the Insurance Company is reduced by Rs. 26,007/- The compensation and the cost of litigation awarded by the learned District Forum is upheld. The penal interest granted by the learned District forum is reduced from 18% to 12 %.
Thus total amount payable by the Insurance Company to the complainant is calculated as follows;
Insured Value of the Vehicle- Rs. 12,00, 000/-
Less Policy excess/ premium adjustment- (-) Rs. 26,007/-
11,73,993/-
Add Compensation- (+) Rs. 4,00,000/-
Rs. 15,73,993/-
Add simple interest @ 12% P.A.
From 1.1.2013 to 30.6.2015
i.e. 30 months ,on Rs. 15,73,993/- (+) Rs. 4,72,198/-
Rs.20,46,191/-
Add cost Rs. 10,000/-
Total Rs. 20,56,191/-
The Insurance Company is directed to pay the total amount i.e Rs. 20,56,191/- to the complainant by 15th September, 2015, failing which the Insurance Company will also have to pay simple interest @ 18% per annum on the said amount from the date of this order, till the date of payment/ realization.
With these observations, modifications and directions this appeal stands disposed off.
As prayed, the statutory amount may be released in favour of the appellant, within four weeks.
Issue free copy of this order to all concerned for information and needful.
Ranchi,
Dated:-13-07-2015
