District Consumer Disputes Redressal Commission ,Faridabad.

Consumer Complaint  No. 124/2021.

 Date of Institution:05.03.2021.

Date of Order:14.06.2023.

Narender S/o Shri Devi Singh R/O VPO Sheikhpura, Tehsil : Ganaur, Sonipat, Haryana – 131001.  Presently at House No. 2177, Sector-2, Faridabad.

                                                          …….Complainant……..

                                                Versus

New India Assurance Company Limited , Aakash Cinema Complex, Mohna road, Ballabgarh, Haryana – 121004.

                                                                              …Opposite party

BEFORE:            Amit Arora……………..President

Mukesh Sharma…………Member.

Indira Bhadana………….Member.

PRESENT:                   Sh.  Ashok Narwat,  counsel for the complainant.

                             Sh. Sandeep Gupta, counsel for opposite party.

ORDER:

                             The facts in brief of the complaint are that the complainant was the owner of vehicle/truck bearing registration No. HR-69-4734 make Tata Motor, Chassis No.E13394 and  Engine oNo. 523184 duly registered with Transport department, Haryana which was purchased by the complainant for earning his livelihood. The opposite was insurance company who insured the vehicle/truck of complainant mentioned in para No.1 vide insurance policy Schedule cum

certificate bearing No. 31270131180100004450 for which Rs.55652/- was paid towards the premium of the insurance for a total IDV of Rs.18,00,000/- insured from 29.08.2018 to 28.08.2019.  The truck in question was stolen from Febris Multispeciality Hospital Narela, Delhi between 21:35 to 23:00 hrs. on 22.08.3029 for which FIR No. 029745 dated 23.08.2019 u/s. 379 IPC at P.S.Narela Outer North, Delhi was registered by the complainant and the information n regard to the theft of the above said vehicle was also intimated to the opposite party within 24 hrs. of the  incident. The complainant raised claim with the opposite party on account of theft of his above said vehicle and sent all requisite documents to the opposite party through DTDC courier.  The opposite party inspite of having received all the documents from the complainant did not pay the claimed amount to the complainant.  The complainant made several request to the opposite party to pay the above said claim on account of theft of above said truck.  Being insurer the opposite party linger on the matter by one pretext or the another and did not pay the claimed amount to the complainant even after perpetual demands of the complainant. The aforesaid act of opposite party amounts to deficiency of service and hence the complaint.  The complainant has prayed for directions to the opposite party to:

a)                to release the genuine claim of Rs.18,00,000/- as per IDV mentioned in the policy schedule to the complainant alongwith the interest at the rate of 18% p.a. till the date of final realization of amount.

 b)                pay Rs.1,40,000/- as compensation for causing mental agony and harassment .

c)                 pay Rs. 50,000 /-as litigation expenses.

2.                Opposite party put in appearance through counsel and filed written statement wherein Opposite party refuted claim of the complainant and submitted

that  the complainant had no cause of action to file and maintain this complaint against the answering opposite party.  The complainant had not supplied the requisite documents i.e. copy of letter of the insured addressed to the RTA concerned to block the RC Regn. NO. HR-69C-4734, call details of 100 no. made by the insured, status of the load obtained by the insured not submitted and final untraced repot accepted by Hon’ble Court to the insurance company despite numerous telephonic calls and correspondence so as to process the claim at the end of the insurance company, however without waiting for the decision of the answering opposite  party the complaint the present complaint, hence the complaint was liable to be dismissed on this ground alone.  Since from the relied upon documents, it was established that the present matter falls within the category of premature as the applicant had violated the terms and conditions of the insurance policy by not supplying the final untraced report duly accepted by the court and all other requisite documents to the insurance company despite numerous telephonic calls and correspondence so as to the process the claim at the end of the insurance company. Opposite party denied rest of the allegations leveled in the complaint and prayed for dismissal of the complaint.

3.                The parties led evidence in support of their respective versions.

4.                We have heard learned counsel for the parties and have gone through the record on the file.

5.                In this case the complaint was filed by the complainant against opposite party–The New India Assurance Co. Ltd. with the prayer to: a)  to release the genuine claim of Rs.18,00,000/- as per IDV mentioned in the policy schedule to the complainant alongwith the interest at the rate of 18% p.a. till the date of final

realization of amount.  b)          pay Rs.1,40,000/- as compensation for causing mental agony and harassment . c)  pay Rs. 50,000 /-as litigation expenses.

                    To establish his case the complainant  has led in his evidence,  Ex.CW1/A – affidavit of Narender, Ex.C1(colly) – RC, Ex.C-2 – Insurance policy, Ex.C-3(Coly) – First Information Report, Ex.C-3(colly) – letter, Ex.C-3(colly) – order dated 24.10.2019,, Ex.C-3(colly)  order dated 24.10.2019 passed  by Shri Jasjeet Kaur, ACMM-01-North District, Rohini Court, Delhi,, Ex.C-4 – courier receipt.

          On the other hand counsel for the opposite party strongly agitated and opposed.  As per the evidence of the opposite party  Ex.RW1/A – affidavit of Niranjan Abrol, Sr. Divisional Manager, New India Assurance Co. Ltd., 5-R/2, NIT, Faridabad., Ex.R-1 & R2 – insurance  policy alongwith terms and conditions,  Ex.R-3 -  RC,, Ex.R-4 – claim form,, Ex.R-5 – Motor vehicle claim form, Ex.R-6 -  investigation report,, Ex.R-7to 9 – letters issued by the investigator to complainant Narender, Ex.R-10 – letter dated04.07.2020.

6.                After going through the evidence led by the parties,  the Commission is of the opinion that the complaint is allowed on non standard basis.

7.                For the adjudication of the present complaint and the issue therein, we place reliance on the Supreme Court Authority Amalendu Sahoo Vs. Oriental Insurance Company in Civil Appeal NO. 2703/2010 decided on 25.3.2010.

                   In Amalendu Sahoo’s case, there was violations of the Terms & conditions of the policy and the insurance benefits were denied by the insurance company.  In the above mentioned case, further reliance was placed by the Supreme Court on:

a).                New India Assurance Co. Ltd. Vs. Narayan Prasad Appa Prasad Pathak, and

b).               National Insurance Company Vs. Nitin Khandelwal

Wherein it was observed by the Apex Court that the claim could have been settled on non standard basis in the event of any breach of condition upto 25%. Once the Insurance Company has insured the vehicle for the loss caused to the  insured, the insurance company is liable to indemnify the owner.  When there is breach of the condition of the policy, the insurance company ought to have settled the claim on non standard basis.

8.                Following the aforesaid guidelines, this Commission is of the opinion that the insurance company cannot repudiate the claim in toto.  The complaint is allowed for claim to be settled on non standard basis.  

IDV value of  vehicle                                                     :         Rs.18,00,000.00

Less Excess Clause                                                         :         Rs.        1,000.00

                                                                                      :         Rs.,17,99,900.00

Deduction 25% on non standard basis  on total              :    -   Rs.   4,49,975.00

                   Total                                                           :         Rs.  13,49,925.00

9.                The opposite party is directed to pay Rs. 13,49,925/-  alongwith interest @ 6% p.a to the complainant from the date of filing of complaint till its realization. The opposite party is also directed to pay Rs.5500/- as compensation on account of mental tension, agony and harassment and Rs.5500/- as litigation expenses to the complainant. This payment will be subject to the condition that the

complainant will furnish the subrogation letter, cancellation of RC, affidavit, Form 29,30 and  Form 35.  Compliance of this order be made within 30 days from the date of receipt of copy of order. File be consigned to the record room.  Copy of this order be sent to the parties concerned free of costs.

Announced on:14.06..2023                                  (Amit Arora)

                                                                                  President

                     District Consumer Disputes

           Redressal  Commission, Faridabad.

                                                (Mukesh Sharma)

                Member

          District Consumer Disputes

                                                                    Redressal Commission, Faridabad.

                                                (Indira Bhadana)

                Member

          District Consumer Disputes

                                                                    Redressal Commission, Faridabad.