D.O.F – 17-07-2014
D.O.O – 25-02-2015
IN THE CONSUMER DISPUTES REDRESSAL FORUM, KANNUR
Present: Sri.Roy Paul : President
Smt.Sona Jayaraman.K : Member
Sri. Babu Sebastian : Member
Dated this, the 25th day of February, 2015.
CC.No.204/2014
(1) C. Vasumathi,
W/o. T.K. Damodaran Nambisan
RE1 1A, ACE, Silver Springs Apart,
Mankav,
Calicut – 673 007.
(2) T.K. Damodaran Nambisan, : Complainants
RE1 1A, ACE, Silver Springs Apart,
Mankav,
Calicut – 673 007.
M/s. Tata Motors Finance Limited,
Ward No. 789, W.B./ 15,
1st Floor,
South bazaar, : Opposite Party
Kannur- 670 002.
ORDER
Sri. Babu Sebastian, Member
The complainant has filed this complaint Under Section 12 of the Consumer Protection Act, 1986, alleging deficiency in service on the part of the opposite party and praying for direction to the opposite party to pay Rs20,00,000 as a compensation for a mental agony, dereliction of duty and breach of Trust to the complainant.
The brief facts of the complaint is that, the 1st complainant was the owner of the Tata Nano Car bearing Registration No. KL-11-AQ-1778 and availed a loan from M/s. Tata Motors Finance Limited, Kannur, wherein the first complainant being the borrower and second complainant being the Co-borrower. As per the terms of agreement dated 31-03-2012 between the complainant and Opposite party, the insurance premium on a car should be remitted to through them along with the monthly repayment of loan. The first year insurance premium paid at the time of delivery of the vehicle and 2nd year insurance premium is remitted then along with the loan repayment in 12 installments, but opposite party failed to renew the insurance premium from 12-02-2014 to 11-02-2015. The complainant further contented that on 25-01-2014, the car met with accident at Kozhikode and same was informed at the City Traffic Police Station. Due to the non-renewal of the insurance policy, Insurance Company rejected claims of the complainant. The act of the opposite party amounts to deficiency in service. Hence this complaint.
After admitting the complaint, notice was sent to the opposite party. Notice sent by this Forum was served when the case was set for appearance of the opposite party, the opposite party remained absent. Nobody appeared on behalf of the opposite party. Opposite party has even failed to sent his defence version by post. Therefore case was posted for filing affidavit evidence of the complainant filed his affidavit evidence and Ext.A1 to A10 marked arguments of the complainant was heard. Case was posted for orders.
Reading the pleadings in conjunction with the complaint, averments, affidavit and documents. It is an admitted fact that the 1st complainant is the owner of KL-11-AQ-1778 TATA Nano Car. The complainant paid the 1st Insurance premium at the time of purchasing the car i.e. Ext.A6 Insurance Policy Certificate of TATA Motor Insurance issued by the opposite party on 12-02-2013, the period of Insurance from 12-02-2013 to 11-02-2014 midnight, Ext.A3 is the monthly loan repayment chart alongwith monthly Insurance premium chart which shows that complainant has paid the monthly insurance premium by installment from 11-04-2013 to upto date very regularly. Ext.A7 is the certificate of insurance cum policy schedule of the National Insurance Company Limited, which shows that the insurance of the car was renewed from 28-02-2014, midnight of 27-02-2015. Ext.A6 compared with Ext.A7, it is crystal clear that the complainant car has no insurance during the period from 11-02-2014 to 27-02-2014. Ext. A8 is certificate issued by the Inspector of Police, City Traffic Police Station, Kozhikode submitting that the TATA Nano Car bearing Reg.No.KL-11-AQ-1778 met with accident on 25-01-2014. Ext. A9 is the claim rejection notice issued by insurance company, stating that, due to the violation of the condition under the policy claim has been rejected. So the insurance company admitted the non-renewal of insurance policy. Ext. A1 is copy of the standard agreement given by the opposite party in this agreement page No. 4 of 8, Para 10.5 described that “The lender may provide an insurance payment facility to the borrower. In such an event the borrower shall pay to the lender the amount towards insurance premium for the assets which may be loaded to the installments. In the event of borrower opting for such facility then, on a yearly basis the Lender shall payout the said amounts to the Insurance Company”. So, as per the agreement, Ext. A3 produced by the complainant i.e. the loan and insurance repayment chart shows that the complainant already paid the agreed insurance premium, by installment. Since the opposite party received the entire insurance premium and did not renew the policy in time is a clear deficiency in service on the part of the opposite party.
Let us have cursory glance at the Ext,A6 and A7,which shows that the vehicle have not a valid insurance policy during the period from 12-02-2014 to 27-02-2014. This is not only a deficiency of service but also criminal offence Under Section 146 Motor Vehicle Act. Plying the Motor Vehicle without proper valid insurance amount to gross negligence or deliberate in action, on the part of the opposite party and it required to be taken cognizance against opposite party. Nothing more to be required to come in to the conclusion that there is grave deficiency in service on the part of the opposite party.
In our opinion, the contention of the complainant is acceptable as he has established his case with clear and tangible material evidence that the opposite party is negligent. On knowing the fact that the car having no valid insurance policy more than 15 days. The mental agony suffered by the complainant is uncountable.
In spite of service of notice, opposite party has neither appeared before the Forum, nor made available its version. In the circumstance, the statement of the complainant on oath remains unchallenged. In the circumstance we are of the view that the opposite party is liable to pay Rs20,000 as compensation for mental agony together with Rs2,000 as a cost at this proceedings. Hence we proceeds to pass the followings.
In the result, the complaint is allowed in part. It is held that the opposite party have committed deficiency of service. The opposite party is directed to pay Rs20,000 (Rupees Twenty thousand only) to the complainant as compensation for mental pain and agony.
Opposite party is further directed to pay Rs2,000 (Rupees two thousand only) to the complainant towards cost of litigation. In the event of non-compliance of the order, the above amount Rs20,000 (Rupees Twenty thousand only) carries interest at rate 12% interest per annum from the date of order till the realization. The opposite party granted 30 days time from today to comply this order failing which the complainant is at the liberty to execute the order as per the provision of the Consumer Protection Act.
Dated this, the 25th day of February, 2015.
Sd/- Sd/- Sd/-
President Member Member
APPENDIX
Exhibits for the complainant
A1 - Standard Agreement.
A2- Letter dated 31.03.2013.
A3- PDC list.
A4- Stock Information
A5- Receipt dated 14.11.2014.
A6- Private Car Package Policy- Certificate cum Policy Schedule.
A7- Certificate of insurance cum policy schedule.
A8- Copy of Certificate dated 26.02.2014.
A9(1)-Copy of Letter dated 26.03.2014.
A9(2)-Copy of Letter dated 29.04.2014.
A10(a)-Copy of letter dated 31.03.2014.
A10(b)-Copy of letter dated 09.05.2014.
Exhibits for the opposite party
Nil
Witness examined for the complainant
Nil
Witness examined for opposite party
Nil
//Forwarded By Order//
SENIOR SUPERINTENDENT
