This C.C. is coming on before us for final hearing in the presence of Sri. Y.Govardhan, Advocate for complainant and of Sri G. Sita Rama Rao, Advocate of Opposite party; upon perusing the material papers on record; upon hearing the arguments and having stood over for consideration this forum passed the following:
ORDER
(Per Sri VIJAY KUMAR, PRESIDENT)
This complaint is filed u/s.12-A of Consumer Protection Act, 1986. The averments made in the complaint are that the complainant is the owner of the vehicle bearing No.AP-20-W-6318 and he insured the vehicle with the opposite party vide policy No.550404/31/07/6300002498 for the period from 29.12.2007 to 28.12.2008. The said vehicle met with an accident on 08.05.2008 and the same was informed to the opposite party on the same day as well as submitted all relevant documents and claimed damages of Rs.1,72,084/-. The complainant further submitted that after a gap of seven months, he received a letter dated 19-02-2009 from opposite party stating that as per internal audit report of the branch, the complainant’s pervious claim for the same vehicle was settled for partial loss on non-standard basis, which was said to be in adverently paid on standard basis as the gross vehicle weight as per RC book is 10,500kgs, but erroneously mentioned as 7500kgs while underwriting the policy by the opposite party. Therefore asked the complainant to pay an amount of Rs.17,750/- towards penalty in order to settle the present claim. Also submitted that the vehicle documents before underwriting the first year policy as well as while preferring the complainant’s previous claim, it is quite illegal to demand the complainant to pay Rs.17,750/- to settle the present claim. And it is further submitted in letter dated 19-02-2009 that the loss satisfaction voucher was enclosed in duplicate is also not correct and it was not enclosed. And also submitted that the complainant had given reply to the letter dated 19-02-2009 and also the opposite party company has collected the discharge voucher from the complainant towards full and final settlement of previous claim and the same was completed and also the previous policy has expired. The complainant further submitted that the internal auditor objection in settlement of the complainant’s previous claim was not binding upon him in settlement of present claim, the complainant also made representation before the Grievance Cell at Hyderabad on 05-08-2009, but there was no response from them, as such the complainant approached the Forum for redressal.
2. To support their case, the following documents were filed and marked as Exs.A1 to A12.
Ex.A1:- Photocopy of Panchanama dated 08.05.2008 issued by P.S., Hasanparthi,
Warangal District.
Ex.A2:- Copy of Policy No.550404/31/07/6300002498 valid from 29.12.2007 to
28.12.2008.
Ex.A3:- Copy of previous policy No. 550404/31/06/6300003191.
Ex.A4:- Copy of endorsement No.550505/31/07/638000041
Ex.A5:- Copy of endorsement cash receipt dated 26.11.2008 for Rs.340/-.
Ex.A6:- Letter dated 19.02.2009 issued by opposite party.
Ex.A7:- Copy of reply letter dt.28.03.2009 issued to opposite party by the complainant.
Ex.A8:- Acknowledgements of opposite party and Grievance cell of opposite party,
Hyderabad.
Ex.A9:- Office copy of Legal Notice dt.18.12.2009 issued by the complainant to the
opposite party.
Ex.A10:- Copy of letter dt.05-08-2009 issued by the complainant to Grievance cell of
opposite party at Hyderabad.
Ex.A11:- Copy of Registration Certificate of vehicle bearing No. AP20W6318.
Ex.A12:- Copy of Surveyor’s report for estimation of loss.
3. On receipt of notice, the opposite party company appeared through their counsel and filed counter. In the counter, the opposite party company denied all the averments made by the complainant in the compliant against them. The opposite party company submitted that the complainant made claim and the same has been settled on standard basis and that after due investigation by the licensed surveyor, the complainant was informed by the opposite party through a letter dated 19-02-2009, “as per internal audit report of our branch, dt.29th August, 2008 stated that your claim No.550404/31/07/6390000112, amount paid Rs.71,000/- the gross vehicle weight as per RC book is 10,500kgs, where as the GVW as per policy 7,500 kgs. i.e. difference of 3,000kgs. Hence the claim is to be settled on non-standard basis and an amount of Rs.17,750/- to be recovered” but inspite of it, the complainant filed this complaint unnecessarily. And also submitted that as the GVW of the vehicle is 7500kg and as per RC it is 10500kgs and there has been a violation of contract and the terms and conditions of insurance policy which rendered the contract voidable but restricting to 75% of the assessed loss by the surveyor, as such there is no deficiency of service on the part of the opposite parties company and prayed to dismiss the complaint.
4. On behalf of the opposite party the following documents filed and marked as Exs.B1& Ex.B2.
Ex.B1:- Certificate of Insurance Policy bearing No.550404/31/07/6300002498.
Ex.B2:- Surveyor Report dt.16-08-2008 along with photographs (Nos.5) of the insured
vehicle,
5. Both the complainant and the opposite party company filed their written arguments.
6. Upon perusing the material paper on record and upon hearing the arguments from both sides, now the points that arose for consideration are,
- Whether the complainant is entitled for the claim?
- To what relief?
Point No.1:-
In this case, as per the averments of the complaint, the complainant is owner of the vehicle bearing No.AP20 W 6318, he insured the vehicle with the opposite party company. The said vehicle met with an accident on 08-05-2008, immediately the complainant informed the same to the opposite party company and submitted all relevant documents, bills and claimed damages for Rs.1,72,084/-. As per the complainant after seven months, he received a letter dated. 19-02-2009, Ex.A6, “as per internal audit report of our branch, dt.29th August, 2008 stated that your claim No.550404/31/07/6390000112, amount paid Rs.71,000/- the gross vehicle weight as per RC book is 10,500kgs, where as the GVW as per policy 7,500 kgs. i.e. difference of 3,000kgs. Hence the claim is to be settled on non-standard basis and an amount of Rs.17.750/- to be recovered”. The complainant had given reply to that letter. Even after receiving reply, as the opposite party company failed to settle the claim, the complainant approached the Forum.
From the documents on record, the opposite party company got insured the vehicle vide policy No.550404/31/07/6300002498 for the period from 29-12-2007 to 28-12-2008. As per Ex.A6, letter dt.19-02-2009, after submitting the claim by the complainant, the opposite party company claimed Rs.17,750/- as recovery for the difference of 3000kgs of GVW on non-standard basis. It is the case of the complainant that the opposite party has already collected discharge voucher from the complainant towards full and final settlement of the previous claim. And also the complainant paid Rs.340/- as additional premium to correct GVW on 26-11-2008 after the accident and the same was collected by the opposite party which has marked as Ex.A5.
It is the case of the opposite party that as vehicle insured is only 7500kgs and as per RC it is 10500kgs and there has been a violation of contract and terms and conditions of insurance policy which rendered the contract voidable. To prove the case of the complainant, the complainant filed only estimation, Ex.A12. Except Ex.B2, surveyor report dated 16-08-2008, there are no documents and bills to prove that the complainant spent Rs.1,72,084/- towards repairs.
In Ex.B2 Surveyor Report dt.16-08-2008, in page No.2, Surveyor given observation for salvage by items wise. And also for Items 1 to 27 he had calculated and lessen depreciation 10%. For item No’s 28 to 76 lessen depreciation 50%. From the Insurance Policy the vehicle is make of 2005 and Accident occurred with in 3 years. In these circumstances the depreciation 50% very excess and not acceptable. In our view 20% depreciation is permissible for the items No. 28 to 76. From the above, the complaint is eligible Rs.35,285.40 for items 1 to 27, Rs.14,708/- for items 28 to 76 and Rs.16,050/- towards repairs and labour charges. In total Rs.66,043/-.
Point No.2:-
In the result, the complaint is allowed in part, directing the opposite party to pay Rs.66,043/- (Rupees Sixty Six Thousand Forty Three only) with interest @ 9% P.A. from the date of filing of complaint i.e. 30-04-2010, till the date of deposit. There is no order as to costs.
Dictated to steno, transcribed by her, corrected and pronounced by us in the open forum, on this 2nd day of February, 2012.
President Member
District Consumer Forum, Khammam
APPENDIX OF EVIDENCE
Witnesses examined for complainant:- None
Witnesses examined for opposite parties:- None
Exhibits marked for Complainant:-
Ex.A1:- Photocopy of Panchanama dated 08.05.2008 issued by P.S., Hasanparthi,
Warangal District.
Ex.A2:- Copy of Policy No.550404/31/07/6300002498 valid from 29.12.2007 to
28.12.2008.
Ex.A3:- Copy of previous policy No. 550404/31/06/6300003191.
Ex.A4:- Copy of endorsement No.550505/31/07/638000041
Ex.A5:- Copy of endorsement cash receipt dated 26.11.2008 for Rs.340/-.
Ex.A6:- Letter dated 19.02.2009 issued by opposite party.
Ex.A7:- Copy of reply letter dt.28.03.2009 issued to opposite party by the complainant.
Ex.A8:- Acknowledgements of opposite party and Grievance cell of opposite party,
Hyderabad.
Ex.A9:- Office copy of Legal Notice dt.18.12.2009 issued by the complainant to the
opposite party.
Ex.A10:- Copy of letter dt.05-08-2009 issued by the complainant to Grievance cell of
opposite party at Hyderabad.
Ex.A11:- Copy of Registration Certificate of vehicle bearing No. AP20W6318.
Ex.A12:- Copy of Surveyor’s report for estimation of loss.
Exhibits marked for opposite parties:-
Ex.B1:- Certificate of Insurance Policy bearing No.550404/31/07/6300002498.
Ex.B2:- Surveyor Report dt.16-08-2008 along with photographs (Nos.5) of the insured
Vehicle.
President Member
District Consumer Forum,
Khammam
