Punjab

Ludhiana

CC/14/502

Jarnail Singh - Complainant(s)

Versus

Natinal Ins.Co.Ltd - Opp.Party(s)

28 Jan 2015

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, LUDHIANA.

       C.C. No: 502 of 18.07.2014

                                                                      Date of Decision:28.01.2015

Jarnail Singh son of S.Piara Singh, resident of Jassian Road, Karol Bagh Colony, Haibowal, Ludhiana. 

……Complainant

                                                    Versus          

National Insurance Company Limited, branch Office No.4, SCO-38, IInd Floor, Feroze Gandhi Market, Ludhiana-141001, through its Manager.

                                                                             ……...Opposite Party

        Complaint under section 12 of the Consumer Protection Act,1986.

         

Quorum:     Sh.R.L.Ahuja, President.                 

                   Sh.Sat Paul Garg, Member.             

                 

Present:       Sh.B.K.Kaushik, Adv. for complainant.

Sh.D.R.Rampal, Adv. for Ops.

ORDER

R.L.AHUJA, PRESIDENT

 

1.                Present complaint under Section 12 of the Consumer Protection Act, 1986 (herein-after in short to be described as ‘Act’) has been filed by Sh.Jarnail Singh(hereinafter in short to be referred as ‘complainant’) against National Insurance Company Limited, branch Office No.4, SCO-38, IInd Floor, Feroze Gandhi Market, Ludhiana, through its Manager. (herein-after in short to be described as ‘Op’)- directing them to make the payment of Rs.36,340/- alongwith interest @18% p.a. besides compensation of RS.50,000/- for the physical as well as mental pain, agony and harassment and Rs.10,000/- as litigation expenses and other benefits to the complainant.

2.                In brief, the case of the complainant is that the complainant is the registered owner of Mahindra Bolero bearing registration No.PB-10-DT-8301, Model 2012 having engine No.11962 and Chassis No.36090. The complainant availed insurance policy of Oriental Insurance Company Ltd., B.O.Samrala and thereafter, the complainant obtained policy of OP No.404501/31/13/6100001835 for the year 27.6.2013 to 26.6.2014. The complainant has a large family consisting of four married sons and he has been using this vehicle for his personal use. On 22.10.2013, a mishap happened and the vehicle of the complainant suffered great damages. The complainant had purchased the vehicle from Modern Motors and the same was taken to the workshop of that company and the complainant paid a sum of Rs.36,340/- against proper receipt NO.2664 dated 2.11.2013. Claim was lodged alongwith the documents with the Ops. However, nothing has been done till date despite making rounds before the Ops by the complainant number of times. The complainant has suffered mental as well as physical pain, tension and harassment due to the act and conduct of Ops. The complainant got registered FIR against the Ops for committing criminal breach of trust also. The complainant got served a registered legal notice dated 1.5.2014 upon the Ops calling upon them to make the payment of RS.36,340/- alongwith interest. However, despite receipt of the said notice, Ops failed to pay any amount till date. Hence, this complaint.

3.                Upon notice of the complaint, OP was duly served and appeared through Sh.D.R.Rampal, Advocate and filed the written reply, in which, OP took up certain preliminary objections that complaint is not maintainable in the present form as the same is false and frivolous one; the complaint is bad for non-joinder and mis-joinder of necessary parties as answering OP2 is not a necessary party; the complainant has not come to this Forum with clean hands and he has suppressed the material facts qua the facts that he has illegally claimed/demanded no claim bonus in the policy got from answering OP valid for the period of 27.6.2013 to 26.6.2014. Prior to that, the complainant got the vehicle in question insured from Oriental Insurance Co.Ltd. and during earlier policy, the complainant lodged a claim with Oriental Insurance Co.Ltd and claim was settled and paid by the Oriental Insurance Co.Ltd. The complainant suppressed these facts from the answering OP at the time of getting aforesaid vehicle PB-10-DT-8301 insured for the period from 27.6.2013 to 26.6.2014. The complainant also filled one proposal form dated 26.6.2013, wherein, he did not disclose regarding taking claim in the earlier policy from Oriental Insurance Co.Ltd and he claimed 20% NCB in premium from the answering OP. The intricate question of law and facts are involved in this case and this case cannot be summarily decided by this Hon’ble Forum and the facts of the case require elaborate evidence and only Civil Court is competent to decide the present case after providing due opportunities to the parties to lead their evidence. On merits, it is submitted that on giving intimation dated 24.10.2013 regarding the alleged damages to the vehicle of the complainant aforementioned, the answering OP deputed Engineer Vikas Sharma for survey and assess the loss of aforesaid vehicle. The said surveyor surveyed and assessed the loss of aforesaid vehicle at Rs.27,233/- vide Motor Survey report dated 15.11.2013. The said report was submitted to the answering OP subject to terms and conditions of the insurance policy. The vehicle was also re-inspected by the surveyor before issuing aforesaid survey report. The DL of driver Nirankar Singh, was got verified by answering OP through Er.Jarnail Singh and Er.Jarnail Singh surveyor gave verification reports dated 12.12.2013 and 20.12.2013 to the Oriental Insurance Company Ltd, Branch Office, Samrala to disclose regarding ‘No Claim Bonus’ confirmation 20% and to disclose with regard to claim experience in earlier policy issued by Oriental Insurance Company Ltd. The answering OP gave mail dated 14.1.2014 to Oriental Insurance Company Ltd. to confirm NCB of this vehicle No.PB-10-DT-8301 and response to aforesaid letter/notice dated 20.12.2013 and email dated 14.1.2014 of answering OP, the branch Manager of Oriental Insurance Co.Ltd., B.O.Samrala reported vide email dated 15.1.2014 that claim was reported in earlier policy and was settled. The complainant was not entitled to NCB but he has given wrong declaration with regard to no claim in earlier policy and submitted proposal form dated 26.6.2013 not disclosing regarding claim lodged in earlier policy with Oriental Insurance Co.Ltd and obtained 20% NCB in premium from the answering OP. The said declaration was found to be incorrect. The claim of the complainant was scrutinized by the answering Op and found that the complainant has given wrong declaration and illegally claimed 20% No Claim Bonus in premium and claim is not payable. The answering OP issued repudiation letter dated 22.1.2014 to the complainant and again no claim letter dated 20.3.2014 was posted to the complainant treating his claim as ‘No Claim’ as he has violated the policy conditions and he is not entitled to any compensation. Due services have been rendered by the answering Op and there is no deficiency in service on the part of the answering Op. At the end, denying all other allegations of the complaint, answering OP prayed for the dismissal of the complaint.

4.                In order to prove the case of the complainant, learned counsel for the complainant tendered into evidence affidavit of complainant as Ex.CA in which, he has reiterated all the allegations made by him in the complaint and Further, learned counsel for the complainant has proved on record the documents Ex.C1 to Ex.C20.

5.                On the other hand, in order to rebut the case of the complainant, learned counsel for the OP adduced evidence by placing on record affidavit Ex.RA of Sh.Kamaljit Singh, its Deputy Manager, in which, he has reiterated all the contents of written reply filed by OP and refuted the case of the complainant. Further, learned counsel for the Op tendered into evidence affidavit Ex.RB of Er.Vikas Sharma, B.E.(Electronics), who was deputed as surveyor by the Ops in order to conduct the survey and assess the loss suffered by the vehicle bearing No.PB-10-DT-8301, in which, he has proved his report dated 15.11.2013 Ex.R6 alongwith documents Ex.R7 to Ex.R33. Further, learned counsel for the OP has proved on record documents Ex.R1 to Ex.R52.

6.                We have heard the learned counsel for the parties and have also perused the record on the file very carefully.

7.                Perusal of the record reveals that it is an admitted fact between the parties that the complainant is the registered owner of the vehicle in question i.e. Mahindra Bolero bearing registration No.PB-10-DT-8301 which was insured with the OP for the period from 27.6.2013 to 26.6.2014 vide insurance policy NO.404501/31/13/6100001835 on payment of premium by getting the discount of 20% on account of NCB. It is further a proved fact that vehicle in question met with an accident on 22.10.2013 and due intimation was given to the OP by the complainant and the claim was lodged which was registered and processed by the Op. Further, it is a proved fact that the complainant had got repaired his vehicle from Modern Motors on payment of Rs.36,340/-. Further, it is a proved fact that surveyor Engineer Vikas Sharma was deputed by the OP in order to survey and assess the loss caused to the vehicle in question, who after his thorough inspection and spot survey, submitted his detailed report dated 15.11.2013 Ex.R6, vide which, he had recommended the loss to the tune of Rs.27,233/-. However, the claim of the complainant was repudiated by the Ops vide letter dated 20.3.2014 Ex.R49 on the ground that the complainant had concealed the facts of getting claim from the Oriental Insurance Company Ltd, with whom, the vehicle was insured prior to the issuance of the present insurance policy and further, the complainant had taken 20% discount on the premium of the policy on account of NCB which clearly amounts to violations of the terms and conditions of the policy.

8.                During the course of arguments, learned counsel for the complainant has not denied the fact qua the insurance coverage of the vehicle taken by the complainant from the Oriental Insurance Co.Ltd., from whom, he had taken the claim against that policy. Further, learned counsel for the complainant has not denied about the taking of 20% NCB while making the payment of premium to the OP. However, the complainant has pleaded the ignorance of law being a poor and illiterate person. Though, OP has repudiated the claim of the complainant in toto. However, it is a well settled principle of law that claim of the complainant cannot be rejected in toto. However, the same can be settled on non-standard basis in view of the judgments passed by the Hon’ble Supreme Court of India titled as Amalendu Sahoo vs. Oriental Insurance Co.Ltd.-2010-ACJ-1250 and National Insurance Co;.Ltd vs. Nitin Khandewal-2008-ACJ-2035, vide which, the claim of the insurer was ordered to be settled on non-standard basis, in case of violation of terms and conditions of the insurance policy.

9.               In view of the above discussion and law laid down by the Hon’ble Supreme Court of India, we hereby allow this complaint and as a result, direct the OP to settle and pay the claim of the complainant on non-standard basis as per the surveyor report dated 15.11.2013 Ex.R6 and as per the terms and conditions of the insurance policy to the complainant, failing which, Op is liable to pay interest @9% p.a. from the date of lodging of claim till its realization. Further, Op is directed to pay compensation and litigation costs compositely assessed as Rs.5000/-(Five thousand only) to the complainant on account of mental pain, agony and harassment suffered by the complainant. However, OP shall be at liberty to deduct the amount of difference of premium which the complainant is liable to pay on account of NCB availed by him. Compliance of order be made within 30 days from the date of receipt of copy of this order which be made available to the parties free of costs. File be completed and consigned to record room.

 

                   (Sat Paul Garg)              (R.L.Ahuja)

                      Member                       President.   

Announced in Open Forum

Dated:28.01.2015

Gurpreet Sharma.