Punjab

Faridkot

CC/19/3

Aman Ahuja - Complainant(s)

Versus

National Insurance Co. Ltd - Opp.Party(s)

Ashwani Kumar Dhingra

27 Aug 2019

ORDER

 DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, FARIDKOT

 

C.C. No. :                         03 of 2019

Date of Institution:    04.01.2019

Date of Decision :     27.08.2019

 

Aman Ahuja son of Raj Kumar Ahuja r/o House No.178/181, Bazar No.1, Ferozepur Cantt.                                        

                                                                                      ...Complainant

Versus

1. National Insurance Co. Ltd. Registered Office 3, Middle Town Street, Post Box NO.9229, Calcutta-700071 through its authorized signatory.
2. National Insurance Co. Ltd. Branch Office Krishna Street-3, Kotkapura, District Faridkot through its Branch Manager.

                                                                         .............OPs

Complaint under Section 12 of the

Consumer Protection Act, 1986.

 

Quorum: Sh. Ajit Aggarwal, President,

               Smt Param Pal Kaur, Member.

 

Present: Sh Ashwani Kumar Dhingra, Ld Counsel for Complainant,

              Sh Ashok Monga, Ld Counsel for OPs.

 

ORDER

(Ajit Aggarwal, President)

                                        Complainant has filed the present complaint under Section 12 of the Consumer Protection Act, 1986 against  OPs seeking directions to OPs to pay Rs.8,00,000/- in respect of Insurance claim and for further directing OPs to pay Rs.1,00,000/- as compensation

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for deficiency in service and harassment alongwith litigation expenses of Rs.11,000/-.

2                                 Briefly stated, the case of the complainant is that he was the registered owner of car bearing no.PAS-786 and it was insured with Ops vide Insurance Policy issued by OPs for the period from 8.02.2016 to 7.02.2017for sum assured of Rs.8 lacs. Unfortunately, during the subsistence of policy in question, car of complainant met with an accident on 18.12.2016 in the area of Police Station Mataur District SAS Nagar Mohali and was badly damaged. Intimation regarding said accident was given to OPs as well as Police and rapat no.22 dated 19.12.2016 was got recorded by complainant before Police. Surveyor appointed by OPs assessed the loss and took photographs. Complainant towed his damaged vehicle from the site of accident to M/s Padam Motors Pvt Ltd and said dealer declared the vehicle as total loss. OPs also got the estimate of vehicle from dealer. Ops have wrongly and illegally repudiated the claim of complainant vide letter dt 1.02.2017 on pretext that there is no insurable interest as the policy is in the name of Saint Sahara Educational Society, Sri Muktsar Sahib. Complainant tried to convince OPs that he purchased his vehicle from said Society and duly got transferred the same in his own name. He made several requests to Ops to make payment of his genuine insurance claim, but all in vain. All this act and conduct of OPs amounts to deficiency in service and has caused harassment and mental tension to complainant. Complainant has prayed for directing the OPs to pay  Rs.1,00,000/- as

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compensation alongwith litigation expenses of Rs.11,000/- besides the main relief. Hence, the complaint.

3                                    The counsel for complainant was heard with regard to admission of the complaint and vide order dated 8.01.2019, complaint was admitted and notice was ordered to be issued to the opposite party.

4                                 On receipt of the notice, the OPs filed written statement wherein they have denied all the allegations levelled by complainant being wrong and incorrect and averred that there is no deficiency in service on the part of OPs. It is averred that complainant is not the consumer of answering OPs and complaint involves no cause of action. He has concealed the material facts from this Forum and it involves complicated questions of law and facts requiring lengthy evidence which is not permissible in the summary proceedings of this Forum. It is further averred that complainant and insured has got no insurable interest under the policy in question as the policy was purchased by Saint Sahara Education Society on 8.02.2016 with validity from 8.02.2016 to 7.02.2017. Complainant purchased the vehicle in question from insured Saint Sahara Educational Society on 17.05.2016, but neither complainant nor insured gave any intimation regarding purchase of said vehicle to them. Even they did not apply for transfer of insurance policy to the name of complainant. On the date of accident, policy in question was in the name of Saint Sahara Education Society

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and not in the name of complainant and therefore, as per Consumer Protection Act, complainant is not the consumer of answering OPs and he has no insurable interest in vehicle under present policy at the time of said loss occurred through accident dt 18.12.2016. Further averred that alleged accident took place on 18.12.2016, but complainant gave intimation regarding this to answering OPs on 22.12.2016. Surveyor appointed by them assessed the loss to the tune of Rs.6,63,000/-on net of salvage basis. Vehicular documents were got verified through Surveyor and Loss Assessor who gave his report dt 13.02.2017 and after completion of paper formalities, claim was processed and intimation regarding non maintainability of claim was given to insured Saint Sahara Education Society through letter dated 1.02.2017. Thereafter, claim was submitted to competent authority who after thorough inquiry and due application of mind repudiated the same as not payable due to non existence of insurable interests and vide letter dated 11.04.2017, insured was duly informed regarding repudiation of his claim. His claim has been rightly repudiated and there is no deficiency in service on their part. All the other allegations and allegation with regard to relief sought too are refuted being wrong and incorrect and prayer for dismissal of complaint with costs is made.

5                                 Parties were given proper opportunities to prove their respective case. Complainant tendered in evidence his affidavit Ex.C-1 and documents Ex C-2 to C-7 and then, closed the evidence.

 

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6                                               In order to rebut the evidence of the complainant, ld Counsel for OPs tendered in evidence affidavit of Tirath Ram Ex OP-1 and documents Ex OP-2 to Ex OP-12 and then, closed their evidence on behalf of OPs.

7                                              We have heard the ld counsel for complainant as well as OPs and have carefully gone through evidence and documents placed on record by respective parties.

8                                              From the careful perusal of evidence and documents placed on record, from the pleadings of complainant and rival contentions of OPs, it is observed that case of the complainant is that his insured car met with an accident and due intimation regarding same was given by him to Police as well as OPs. Complainant completed all formalities and submitted requisite documents to them but despite several requests, OPs have illegally and unlawfully repudiated the claim of complainant without any reason, which amounts to deficiency in service and trade mal practice on the part of OPs. On the other hand plea taken by Ops is that at the time of said accident, policy pertaining to insurance of vehicle was not in the name of complainant. Neither insured Saint Sahara Education Society nor complainant informed them regarding transfer of ownership of vehicle from the name of insured to the name of complainant. Complainant is not entitled for any relief of insurance claim as sought by him and prayed for dismissal of complaint with costs.

 

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9                         To prove his pleadings, ld counsel for complainant has relied upon document Ex C-3 which is copy of Motor Accident Claim Intimation letter given by complainant to OPs through which he duly informed Ops regarding accident dated 18.12.2016. Ex C-4 is copy of insurance policy wherein it is clearly mentioned that vehicle bearing no PAS-786 was fully insured with Ops vide Insurance Policy issued by Ops for the period from 8.02.2016 to 7.02.2017 for Rs.8 lacs. Ex C-5 copy of DDR dated 19.12.2016 further proves the pleadings of complainant that he duly informed OPs as well as got recorded report regarding accident dated 18.12.2016 to Police.

10                      There is no denial to the fact that the vehicle of the complainant was insured with opposite parties and during the period of insurance, the vehicle in question got damaged and complainant lodged the claim for the loss to his vehicle. But the opposite parties rejected the claim of the complainant only on the ground that the registration stands in the name of complainant, whereas insurance is in the name of Saint Sahara Education Society, so insurable interest in this claim does not stand. OPs have placed on record report of Surveyor Ex. OP-4, perusal of which reveals that the surveyor assessed the loss and liability of the company was Rs.6,63,000/- on net of salvage basis. OPs also admitted that the complainant gave intimation regarding accident to them, they appointed the surveyor to assess the loss to the vehicle but they argued that as original owner sold vehicle to the complainant and they gave no

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information regarding this sale to them and not got the policy transferred in the name of complainant within a stipulated period of 14 days as per General Regulations no.17 of Motor Vehicle Act, so there is no insurable interest in the vehicle either of Saint Sahara Education Society or of complainant and they have rightly repudiated the claim of the said vehicle. On it the counsel for the complainant argued that earlier Saint Sahara Education Society was owner of the vehicle who got insured the said vehicle with OPs, complainant purchased the said vehicle from said Saint Sahara Education Society along with all rights over the vehicle and the insurance policy is also automatically transferred in his favour and he has all insurable interest in the said vehicle. In his support he put reliance on the citation 2014 (3) Consumer Law Today, 63 Case titled as Mallamma (Dead) by LRS Vs National Insurance Company Ltd & Ors whereas our Hon’ble Apex Court held that Motor Vehicle Act, 1988, Section 157-Insurance Claim-Transfer of Ownership- Once the ownership of the vehicle is admittedly proved to have been transferred, the existing insurance policy in respect of the same vehicle will also be deemed to have been transferred to the new owner and the policy will not lapse even if the intimation as required under Section 103 of the Motor Vehicle Act is not given to the insurer. He argued that in the light of above decision of the Hon’ble Apex Court, the insurance policy is also transferred in favour of the complainant alongwith ownership of the vehicle and the OPs cannot repudiate the claim on the ground that the insurance policy was not transferred. So, in these circumstances and in

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view of the decision of Hon’ble Supreme Court, the OPs illegally and wrongly repudiate the claim, the vehicle in question and they are liable to pay the compensation for loss of the vehicle.

11                                     From the above discussion and in the light of evidence and case law produced by him, it is made out that OPs have wrongly and illegally repudiated the claim to the vehicle of the complainant, which amounts to deficiency in service. Hence, complaint in hand is hereby allowed with direction to OPs to pay Rs.6,63,000/- as assessed by the Surveyor vide his Survey report Ex.OP-4 for the loss to the vehicle of the complainant along with interest @ 9 % P.A. from 4.01.2019 i.e. from the date of filing of present complaint till final realization. OPs are further directed to pay Rs.5,000/- to complainant as consolidated compensation for harassment and mental agony suffered by him as well as for litigation expenses. Compliance of this order be made within one month of receipt of the copy of the order failing which complainant shall be entitled to initiate proceedings under Section 25 and 27 of the Consumer Protection Act. Copy of the order be supplied to parties free of costs. File be consigned to record room.

Announced in Open Forum

Dated : 27.08.2019

 

(Param Pal Kaur)           (Ajit Aggarwal)   

Member                         President