BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, YAMUNA NAGAR
Complaint No. 721 of 2010.
Date of institution: 03.08.2010
Date of decision: 26.10.2016.
Nishan Singh aged about 55 years son of Shri Ajit Singh, resident of House No. 181-D, Railway Colony, Jagadhri Workshop, Yamuna Nagar.
…Complainant.
Versus
National Insurance Company limited, New Fountain Chowk, Yamuna Nagar, through its Branch Manager.
… Respondent.
BEFORE SH. ASHOK KUMAR GARG, PRESIDENT
SH. S.C.SHARMA, MEMBER.
Present: Sh. Satnam Singh, Advocate, counsel for complainant.
Sh. Rajiv Gupta, Advocate, counsel for respondent
ORDER
1. Complainant Nishan Singh has filed this complaint under section 12 of the Consumer Protection Act 1986, praying therein that the respondent (hereinafter referred as OP) be directed to make the payment of sum insured of Rs. 3,38,377/- on account of theft of car bearing Chasis No. 524231, Engine No. 4348191 and temporary registration No. HR99QT-5973 alongwith interest and also to pay compensation as well as litigation expenses.
2. Brief facts of the present complaint, as alleged by the complainant, are that the complainant purchased Maruti Wagon-R LXi car vide Invoice No. 2981 dated 20.04.2007 for a sum of Rs. 3,56,187/- bearing chasis No. 524231, Engine No. 34348191, which was insured with the Op Insurance Company vide its policy bearing 2053013 valid from 20.04.2007 to 19.04.2008 for a sum insured IDV of Rs. 3,38,377/-. On 26.07.2007, the aforesaid car of the complainant was stolen by somebody from the area of Sector-26, Chandigarh and an FIR bearing No. 278 dated 26.07.2007 under section 379 IPC was got registered with the police Station, Sector-26, Chandigarh. The complainant immediately informed the OP Insurance Company regarding the theft and claim was also lodged by the complainant. The OP also appointed the investigator who after investigation submitted his report that the factum of theft of car in question was correct. Thereafter, the complainant met with OP Insurance Company for settlement of his claim and he was asked to bring the untrace report from the competent authority. As such, the complainant obtained the untrace report dated 29.03.2008, which was duly endorsed by the SHO, P.S. Sector-26, Chandigarh and it was supplied to the OP Insurance company alongwith letter dated 03.04.2008 but the OP Insurance Company did not settle the claim of complainant inspite of several requests and visits of the complainant. On 08.07.2008, the complainant received a letter from the Op Insurance Company wherein the registration certificate and untrace report were again demanded by the OP Insurance Company and in this regard the complainant had told that there is no registration certificate of the vehicle as it was still not got registered with the Registering Authority and the car was got insured on the basis of engine number and chasis number as mentioned in the invoice and policy but the claim was not settled and then the complainant served a legal notice dated 12.08.2008. Lastly, as per letter dated 25.03.210, the Op Insurance Company has approved the claim of the complainant to the tune of Rs. 3,37,877/- subject to completion of some formalities which have been completed by the complainant except submission of NOC from the concerned Bank. Now the HDFC Bank, Yamuna Nagar has shown Rs. 4,79,944/- as outstanding against the complainant. As such, the demand of NOC by the Op Insurance Company from the bank is uncalled for and unjustified. Hence this complaint.
3. Upon notice, Op appeared and filed its written statement by taking some preliminary objections such as complaint is not maintainable; no negligence or deficiency in service; complaint is bad on account of non-joinder and mis-joinder of necessary parties. It has been submitted that on receipt of intimation regarding the theft of car in question, the OP Insurance Company immediately desired the complainant to submit the necessary documents to enable the respondent company to process the claim. The complainant was desired to submit the copy of registration certificate of the car in question, purchase invoice, original insurance policy, untraced report, notice to Registering Authority besides No Dues Certificate issued by Financer HDFC Bank Ltd. vide letter dated 02.04.2008, 05.05.2008, 08.07.2008, 04.08.2008, 05.09.2008, 09.12.2008, 13.04.2009 but the complainant did not complete the desired and necessary formalities. Inspite of that, the OP Insurance Company vide its registered letter dated 04.02.2010, approved the claim of the complainant for a sum of Rs. 3,37,877/- subject to submission of documents i.e. Letter of Subrogation, Letter of undertaking duly attested by Ist Class Magistrate, Enclosed loss voucher duly discharged on revenue stamp, latest report of NCRB, NOC issued by the Financer HDFC Bank. However, the complainant did not complete the entire formalities and a reminder to this effect was also given to the complainant vide registered letter dated 25.03.2010 but the complainant has again failed to submit the documents in question and the complainant vide his letter dated 11.05.2010 informed the respondent company that he was in touch with his financer regarding NOC but did not submit the same to the company and the OP Insurance Company finding no other alternative closed the claim file of complainant as “No Claim” and the same was closed vide letter dated 09.06.2010 as per terms and conditions of the Insurance Policy and on merit controverted the plea taken in the complaint and reiterated the stand taken in the preliminary objections. Lastly, prayed for dismissal of complaint.
4. To prove his case, complainant tendered into evidence his affidavit as Annexure CX and documents such as Photo copy of Invoice of car Annexure C-1, Photo copy of Form No.21 Sale Certificate as Annexure C-2, Photo copy of Temporary Registration Certificate as Annexure C-3, Photo copy of insurance policy as as Annexure C-4, Photo copy of FIR No. 278 dated 26.10.2007 as Annexure C-5, Photo copy of application for claim as Annexure C-6, Photo copy of intimation letter regarding necessary enquiries of theft of car as Annexure C-7, Photo copy of letter written by complainant for settlement of claim to the OP Insurance Company as Annexure C-8, Photo copy of Untrace report dated 29.03.2008 submitted by police as Annexure C-9, Photo copy of registered AD.UPC dated 20.08.2008 as Annexure C-10, Photo copy of postal receipt as Annexure C-11, Photo copy of letter dated 05.09.2008 written by OP Insurance Company to complainant for submission of some documents as Annexure C-12, Photo copy of intimation letter written to Registering Authority (M.V.), Jagadhri as Annexure C-13, Photo copy of postal receipt as Annexure C-14, Photo copy of untraceable report issued by Addl. Chief Judicial Magistrate as Annexure C-15, Photo copy of letter for submission of documents with the OP Insurance Company as Annexure C-16, Photo copy of letter dated 25.03.2010 as Annexure C-17, Photo copy of letter dated 04.06.2010 issued by HDFC Bank in which an amount of Rs. 4,79,944/- are outstanding against the complainant as Annexure C-18 and closed his evidence.
5. On the other hand, counsel for the OP Insurance Company tendered into evidence affidavit of Sh. V.K. Sethi, Assistant Manager, NIC as Annexure RW/A and documents such as Photo copy of letter dated 02.04.2008, 05.05.2008, 08.07.2008 & 04.08.2008 for completion of formalities as Annexure R-1 to R-4, Photo copy of letter dated 05.09.2008 as Annexure R-5, Photo copy of letter dated 09.12.2008 as Annexure R-6, Photo copy of letter dated 13.04.2009, 04.02.2009, 25.03.2010 as Annexure R-7 to R-9, Photo copy of letter written by Nishan Singh for deposition of NCRB report as Annexure R-10, Photo copy of letter dated 09.06.2010 for closing the claim as No Claim as Annexure R-11, Photo copy of insurance policy alongwith terms and conditions as Annexure R-12 and closed the evidence on behalf of OP Insurance Company.
6. We have heard the learned counsel for both the parties and have gone through the pleadings as well as documents placed on file minutely & carefully.
7. It is not disputed that the complainant was registered owner of the Car Wagon-R bearing chassis No. 524231, Engine No. 4348191, which was insured with the Op Insurance Company for a sum of Rs. 3,38,377- vide its insurance policy bearing No. 2053013 valid from 20.04.2007 to 19.04.2008 Annexure C-4/R-12. It is also not disputed that car in question was stolen on 26.07.2007 and in this respect an FIR bearing No. 278 dated 26.10.2007 under section 379 IPC (Annexure C-5) was lodged at Chandigarh in the police station, Sector 26.
8. The plea of the OP Insurance Company is that the complainant failed to supply the relevant documents mentioned in the letters and reminders Annexure R-1 to R-9. hence, the claim of the complainant could not be settled and finally the claim of the complainant was repudiated vide letter dated 09.06.2010 Annexure R-11 as “No Claim” is not tenable as the OP Insurance Company admitted in para No.4 of preliminary objections that the claim of the complainant has been approved for a sum of Rs. 3,37,877/- by the surveyor subject to submission of subrogation letter, letter of undertaking, loss voucher, latest copy of NCRB Report and NOC issued by the Financer. When the claim of the complainant has been approved by the surveyor then how the OP Insurance Company can say that the claim of the complainant could not be settled without tendering the aforesaid documents. Moreover, from the perusal of Annexure C-13, it is clear that the complainant intimated to the Registering Authority (M.V) Jagadhri regarding the theft of car in question which has not been denied by the OP Insurance Company in their reply. Furthermore, from the perusal of Annexure C-16, it is evident that the complainant deposited the untrace report, photo copy of invoice letter and Form No. 24 with the OP Insurance Company, so, the OP Insurance Company cannot deny the claim of the complainant on the ground of non-submission of NCRB Report as well as NOC from the financer as it is not the duty of the complainant that he is bound to submit the latest NCRB Report to the OP Insurance Company.
9 During the course of arguments, learned counsel for the OP Insurance Company mainly stressed on the point that complainant failed to submit the NOC from the Financer despite so many letters Annexure R-1 to R-9 but this plea have no weightage as the complainant has informed the OP Insurance Company vide his letter dated 11.05.2010 (Annexure R-10) that huge amount is still pending against the complainant in respect of loan taken against the car in question from the financer and he is unable to pay the same. When the complainant clarified his position, then it was the duty of the OP Insurance company to issue the claim amount to the complainant in the name of financer but they did not do so due to the reason best known to them and has withheld the claim amount wrongly and illegally.
10 In the circumstances noted above, as the OP Insurance Company has wrongly withheld the claim of the complainant which constitute deficiency in service on the part of OP. We are of the considered view that as the claim of the complainant has already been approved by the OP Insurance Company, hence we have no option except to partly allow the complaint of complainant and as such the OP Insurance Company is liable to pay the approved claim amount of Rs. 3,37,877/- to the complainant.
10. Resultantly, we partly allow the complaint of complainant and direct the OP Insurance Company to pay the approved amount of Rs. 3,37,877/- through Financer i.e. HDFC Bank to the complainant alongwith interest at the rate of 7% per annum from the date of filing of complaint till its realization subject to submission of subrogation letter, indemnity bond, if any, and other relevant documents/papers form No. 29 & 30 which are necessary to transfer the vehicle in the name of OP Insurance company. The complainant is also directed to submit his bank loan account with HDFC Bank to the OP Insurance Company within a period of 15 days. Order be complied within 30 days after preparation of copy of this order failing which complainant shall be entitled to invoke the jurisdiction of this Forum as per law. Copies of this order be supplied to the parties concerned free of costs as per rules. File be consigned to the record room after due compliance.
Announced: 26.10.2016.
( ASHOK KUMAR GARG)
PRESIDENT
(S.C.SHARMA)
MEMBER
