Delhi

New Delhi

CC/1715/2008

Priyanka Overseas Pvt.Ltd. - Complainant(s)

Versus

M/S. The Oriental Insurance Company Ltd. - Opp.Party(s)

16 May 2016

ORDER

 

 

CONSUMER DISPUTES REDRESSAL FORUM-VI

(DISTT. NEW DELHI),

 ‘M’ BLOCK, 1^STFLOOR, VIKAS BHAWAN, I.P.ESTATE,

 NEW DELHI-110001

 

Case No.C.C./1715/2008                                                                                                                 Dated:

In the matter of:

PRIYANKA OVERSEAS PVT. LTD.,

D-18, Connaught Place,

New Delhi

 

 

……..COMPLAINANT

 

VERSUS

THE ORIENTAL INSURANCE COMPANY LTD.,

A-25/27, Asaf Ali Road,

New Delhi-110 002

 

And also at Branch Office:

K-37, Connaught Circus,

New Delhi

       

               .... OPPOSITE PARTY

 

PRESIDENT: S.K. SARVARIA

 

ORDER

The repudiation of the insurance claim of the complainant company by the OP insurance company, on the ground that it has not disclosed the fact of taking a claim, on the vehicle bearing registration number DL-4 CAB-6758 from its previous insurer, i.e., Bajaj Allianz General Insurance Co. Ltd has led the complainant company to file the present complaint, claiming the following reliefs against the OP insurance company:

1. The OP be directed to pay Rs.17,711/- towards the accident claim of the complainant with interest @18% per annum.
2. The OP be directed to pay a sum of Rs. 50,000/- as compensation for harassment, suffered by the complainant.
3.     The OP be directed to pay the cost of the proceedings to the complainant.
4. Any other relief(s), which this Hon’ble Commission may deem fit and proper under the facts and circumstances of the case, may also be awarded in favour of the complainant and against the OP.

The notice of the complaint was issued to the OP insurance company who contested the complaint and filed the written statement objecting to the claim of the complainant, mainly on the ground of misrepresentation and also on the ground that complainant is not consumer within the meaning of The Consumer Protection Act, 1986 (in short Act). The OP has prayed for dismissal of the complainant with cost.

 

In the rejoinder to the WS, the complainant has denied the averments made therein and has reaffirmed the facts stated in the complaint. The complainant has filed his affidavit in evidence of Shri Amit Roy Director of the complainant company in support of its case. On behalf of OP insurance company, the affidavit in evidence of Mr Chhotu Ram, Devisional Manager of OP insurance company is filed. Both parties have filed written arguments. It would not be out of place to mention that on 21/10/2013, the arguments on behalf of complainant were heard and none appeared on behalf of OP for final oral arguments and the matter was reserved for final order. Thereafter, the then learned President and one learned Member of this District Forum retired from the services leading to issuance of fresh notices to the parties for addressing fresh arguments.

 

We have heard the learned counsel for the OP and have gone through the written arguments filed on behalf of both parties, record of the case and relevant provisions of law. None appeared on behalf of the complainant on 6/5/2016 for addressing oral arguments.

 

The basic facts are not disputed. Admittedly, the complainant company obtained an insurance policy number 272300-31-2007-9278-002 for the period 3/12/2006 to 2/12/2007 which was renewed by OP being insurance policy number 2727300-31-2008-10967 for the period 3/12/2007 to 2/12/2008 from the OP insurance company for the Honda City ZXI car bearing registration number DL-4C-AB-6758. Admittedly, earlier the same car was got insured by the complainant company from M/s Bajaj Allianz General Insurance Co. Ltd, vide policy number OG-06-1101-1801-0024310 from 3/12/2005 to 2/12/2006. The said vehicle in question met with an accident and for getting it repaired, the complainant company has paid the full amount of Rs. 17,711/- on 23/12/2007 to the service station in question. Thereafter, the reimbursement of the insurance claim was made by the complainant, which was repudiated by the OP insurance company, by letter dated 14/2/2008 Exhibit PW 1/L on account of alleged misrepresentation of the fact to the OP insurance company by not disclosing that from the previous insurer, the claimant company has obtained claim. Admittedly, the complainant company has deposited to the benefit on account of claim obtained from the previous insurer, amounting to Rs. 5071/– with OP Insurance Company.

In the backdrop of the above admitted position we proceed to decide the present complaint case. The pleadings, evidence and written arguments of the parties have generated two questions to be decided by this District Forum. One, whether complainant is a consumer within the meaning of provisions of Act or not? Two, whether the claim of the complainant was rightly repudiated by OP insurance company?

 

On the first question, on behalf of the complainant company, the decision of Hon’ble National Commission in Harsolia Motors versus National Insurance Co. Ltd, being First Appeal No. 159, 160, 161 of 2010 decided by Hon’ble National Commission on 3/12/2004 is relied upon, wherein it was clarified that a person who takes insurance policy to cover the risk does not take the policy for commercial purpose. Policy only is for indemnification of actual loss. It is not intended to generate profit. Hence, a consumer who takes insurance policy is entitled to approach the Consumer Forum under The Consumer Protection Act, 1986. Therefore, in the light of Harsolia Motors case (supra) relied on behalf of the complainant, the above first question raised on behalf of the OP insurance company that the complainant is not a consumer needs to be decided in favour of the complainant and against OP insurance company.

 

On the second question, it is not disputed that. from the earlier insurer,Bajaj Allianz General Insurance Co. Ltd the claimant company has obtained insurance claim in the period prior to obtaining insurance policy from the OP insurance company. Undisputedly the amount of no claim bonus obtained by the claimant company stood deposited with the OP insurance company by the claimant company. According to the claimant company, when it was insured with the earlier insurer no amount was paid by it for the claim and no entry was there in its record regarding that claim. So, by mistake, the claimant company informed the OP insurance company at the time of taking insurance policy regarding the vehicle in question that no claim for the earlier vehicle was obtained by it from the earlier insurer. On realising the mistake and coming to know about it, the claimant company has deposited the amount of Rs. 5071/– with the OP insurance company. This amount is admittedly received by the OP insurance company without any protest, nor the said amount is refunded by the OP insurance company to the claimant company. Due to this fact, the lapse on the part of the claimant company in informing the OP insurance company regarding claim obtained from the previous insurer stood condoned by the OP insurance company. Therefore, we are of the view that the insurance claim of the complainant company should have been allowed and not repudiated by the OP insurance company.

 

In view of the above discussion, we allow the complaint and direct the OP insurance company to pay to the claimant company, a sum of Rs. 17,711/– along with simple interest at the rate of 10% per annum from the date of filing of the present complaint till realisation of the said amount. In addition, we also direct the OP insurance company to make the payment of Rs. 15,000/– to the claimant company towards inconvenience and harassment suffered on account of repudiation of the claim and this amount also includes litigation cost. If the said amount of Rs. 15,000/– is not paid by the OP insurance company to the claimant company within a period of one month from the date of receipt of this order, the same shall be recoverable by the claimant company along with simple interest at the rate of 10% per annum from the date of this order till realisation of the said amount. This order be sent to server (www.confonet.nic.in ). A copy of this order be sent to both parties, free of cost by registered post.

 

The file be consigned to the record room.

 

Pronounced in open Forum on ­16.05.2016.

 

 

 

 

(S K SARVARIA)

PRESIDENT

 

                                            (H M VYAS)

MEMBER