(Passed on 17/11/2022)

Passed by Shri Atul D. Alsi, Hon’ble President 

1.         The complainant filed complaint case against the repudiation  of  insurance claim for the  theft of truck for the reason of delay in  intimation to Insurance  Company  and delay in lodging  the F.I.R. and thereby  claiming compensation  of I.D. Value of  vehicle  amounted to Rs. 12,50,000/- along with  interest at the rate of 12% and Rs. 50,000/- towards compensation  for  mental torture and Rs. 25,000/- towards cost of litigation.

2.         The story in short is as under,

            The complainant is the owner of truck bearing registration No. MH-34/AB-2986 manufactured in the year 2010 and insured with the O.P. No. 2- National Insurance Company Ltd. under the policy bearing No. 281801/31/15/6300005780 for the period  between 22/03/2016  to 21/03/2017 against the premium Rs. 34,678/- for the  I.D. Value of Rs. 12,50,000/-. On 05/03/2017 the driver – Mr. Sanjay Yadav of complainant’s vehicle was parked before the shop of Appollo Tyres at Ballarpur for repairing.  On 06/03/2017 Manager of the complainant told the driver – Mr. Sanjay Yadav to transport the goods at Surajgad. The driver of the complainant’s vehicle   had come to the spot at the parked vehicle at 8.00 a.m. to take the load there from for the destination at Surajgad and thereafter found that the parked truck was missing and this fact is informed to the Manager of the complainant.  After searched at Telangana, Warangal, Kagjnagar, Mancheriyal and Adilabad the truck could not be traced out. Therefore, on 04/04/2017 the Manager of the complainant Mustak Sheikh lodged the complaint at Ballarshaha Police Station and crime bearing No. 405/2017 under section 379 has been registered at Police Station, Ballarshaha. After investigation the truck could not be found  out therefore ‘A’ final report has been submitted to the  Hon’ble  Judicial Magistrate First Class, Ballarashaha on 18/08/2017.  

3.         The complainant intimated in respect of theft of vehicle to Manager Mr. S.H. Goutam, on telephone for theft of the truck and lodged written complaint on 09/03/2017 with O.P.No. 2.  The complainant has submitted   all relevant documents as per demand letter issued by the O.P. No. 2 but O.P.No. 1&2 failed to adjudicate the claim and repudiated the claim for the reason of delay in intimation and registration of F.I.R. at Police Station by issuing letter on 04/12/2018 and thereafter on 12/12/2018. Thereafter, the complainant issued legal notice through Advocate Mr. Chandra Raj Pande on 24/12/2018 but O.P. Nos.1&2 failed to honor the claim, therefore, petition is filed.

4.         The O.P. Nos. 1&2 filed  reply and denied  all the allegations   against them and  submitted that the complainant’s vehicle  has been insured  with the O.P. No. 2 for the period between  22/03/2016  to 21/03/2017 for I.D. Value  of Rs. 12,50,000/-. As per general condition of insurance policy   that  in case   of any  mishap, contingency, loss, theft  etc.  it is the duty  of the owner/insured  to lodged  a  report in writing to the  nearest Police Station  and to inform  to the Insurance Company in writing with full particulars of Motor vehicle, Motor driving No. date & time  of accident , details  of spot, name  & address of driver, jurisdiction  of Police Station  so as to enable  the  Insurance Company to take steps for further investigation  and  to locate culprit and stolen  property.  The complainant  has informed  after four days  of incident  to the Insurance Company and there is delay  in  lodging the  report  of theft to the Police Station after 30 days  from the incident, therefore, there  is  violation  of condition No. 1 of the policy. Hence,  the O.P. repudiated  the claim by issuing  letter  dated  04/12/2018 and thereafter  on 12/12/2018 does not amount  to deficiency  of  service and therefore,  the petition  has no merit  and is liable to be dismissed with cost.

5.         Counsel for the complainant Mr. C.R. Pande has argued that   after missing of truck the driver and manager has gone to search the truck at various places. The complainant has given oral intimation of theft on the day of incident to the Manager of O.P. No. 2. The intimation of theft has been given to the Police Station, Ballarshaha. After  searched,  the police machinery  has registered  an offence of theft after 30 days  does   not  amounted  to intentional  delay  on the part of the complainant, therefore,  the rejection of claim  does  amount  to deficiency  of service.  

6.         Counsel for the O.P. Nos. 1&2 argued  that  there is delay of  intimation  of four days in writing  to the Insurance Company and there is no reason  for delay  in lodging  the F.I.R. at Police Station, Ballarshaha is  a proper reason  for  repudiation  of claim  for the breach of  policy of term  No. 1. Therefore, there is no merit in the present case, hence, liable to be dismissed with cost.

.REASONING

7.         The basic dispute between the parties  is  in respect of  repudiation  of insurance claim of complainant  for the reason  of  breach of  condition of policy  No. 1 for the reason of  delay  in intimation  of theft of vehicle   after  4 days  and registration of F.I.R. after 30  days from the date of  incident.  The O.P. has admitted that  the complainant is  the owner of truck  bearing  registration No. MH-34/AB-2986 manufactured  in the year 2010 and  insured with the O.P. under the policy bearing No. 281801/31/15/6300005780 for the period  between 22/03/2016  to 21/03/2017 against the premium Rs. 34,678/- for the  I.D. Value of Rs. 12,50,000/-. On 05/03/2017 the  complainant’s driver  parked the vehicle  before  the shop of  Appollo Tyres at Ballarpur for replacing  the tyres but  on the  next date  on 06/03/2017 the truck was missing.  The driver informed the manager and owner of the truck about missing of truck and thereafter searched at Telangana, Warangal, Kagjnagar, Mancheriyal and Adilabad  the truck could not be  traced out. Therefore,  on 04/04/2017 the  FIR  No. 405/2017 came to be registered under Section 379 of I.P.C. at Police Station, Ballarhaha, District Chandrapur.  It is  routine practice  of Police Station  that  police machinery  instead of registration of F.I.R. of theft of vehicle   advised the  owner  of truck to search out  first and thereafter use  to  register the F.I.R.   Therefore, the period of search is of 30 days is a sufficient reason for delay in lodging the F.I.R. with Police Station.  The complainant has orally informed to the concerned Police Station in respect of theft of truck.

8.         The complainant has given written  intimation  of theft to the Insurance Company on 09/03/2017 that means  of  after 4 days  of  incident, therefore,  the delay of 4 days  is not    in inordinate delay  for  intimation about  the  incident.  The complainant  first  took the search of truck and when it revealed  that  no truck is traced out then giving  of intimation after 4 days  is bonafied  reason   for delay  in giving  intimation. Therefore, it is not the complete breach of policy and therefore, the complainant is entitled  for compensation  of 70% of  I.D. Value i.e. Rs.  8,75,000/- in full and final settlement  of insurance  claim   on the Non Standard Basis of policy  without   awarding  interest and cost to the complainant as per  following  order.

ORDER

i.          Complaint Case No. CC/19/41 is partly allowed.  .

ii.          Complainant is entitled to receive 70% of I.D. Value of truck bearing registration No. MH-34/AB-2986 amounted to Rs. 8,75,000/- on Non Standard Basis of the policy  without  awarding  interest and cost.

iii.         Copy of order be furnished to both the parties, free of cost.