BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II, U.T. CHANDIGARH

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Complt.  Case No:  539 of 2009

Date of Institution:   20.04.2009

Date of Decision  :   17.09.2010

Ranjan Sherpa, R/o H.No.506, Sector 22-A, Chandigarh

……Complainant

V E R S U S

Oriental Insurance Company Limited, SCO No.109-110-111, Sector 17-D, Chandigarh, through its Manager.

.…..Opposite Party

CORAM:          SH.LAKSHMAN SHARMA                            PRESIDENT

                    SH.ASHOK RAJ BHANDARI               MEMBER

                    MRS.MADHU MUTNEJA                           MEMBER

PRESENT:      Sh.Ankur Chaudhary, Adv. for the complainant.

Sh.Mrigank Sharma, Adv. for the OPs.

PER MADHU MUTNEJA, MEMBER

                The instant complaint has been filed by Sh.Rajan Sherpa against OP for deficiency in service on account of wrong repudiation of his claim.

1]             The complainant is the owner of Bajaj Pulsar Motorcycle bearing Regd. No.CH-03-Z-1793.  The motorcycle was insured with the OP, vide Insurance Policy annxed at Ann.C-1 and valid till 17.3.2008. 

                On 26.2.2007 the motorcycle was being driven by the son of the complainant in front of his house when a dog came in front of him and in an effort of trying to save the dog, the motorcycle skidded and got damaged.  The motorcycle was taken by the complainant to Partap Auto India Ltd. for repairs where a bill of Rs.23,946/- vide Ann.C-2 was raised towards repair of the motorcycle.  The complainant then filed a claim with the OP.  The OP declined the claim vide letter dated 30.3.2009 (Ann.C-3) on the ground that the complainant had already taken a claim under the previous policy from D.O.-I and claimed a No Claim Bonus (NCB) of 20% while taking the renewed policy.  In view of this the insurance contract became void and no claim was payable.  The file was closed as ‘No Claim’. 

                The complainant has thus filed the instant complaint praying that the OP be directed to pay the repair charges along with compensation for mental agony and harassment.

2]             After admission of the complaint, notice was sent to the OP.

                The OP in their reply have submitted that the complaint is not maintainable because the complainant had concealed that he had obtained NCB to the extent of 20% in the premium towards the policy in question.  Moreover, the complainant had already availed a claim from the Oriental Insurance Company Division Office No.1, Chandigarh.  Therefore, the OP has rightly repudiated the claim and is not liable to indemnify the complainant for the loss as he is himself guilty of breach of terms & conditions of the contact of insurance policy.  They have referred to Statutory Motor Tariff Endorsement issued by Government of India in this regard. 

                It is further submitted by the OP that NCB is a bonus given to a customer, who does not take any claim in the previous insurance policy.  However the same lapses if in a particular year a claim is taken from the company, then for the next year the customer loses his right for NCB.  The complainant by not disclosing the claim taken by him in the previous policy and thereby taking NCB in present policy has committed breach of terms & conditions of the policy and is thus not entitled for any claim. They have therefore rightly repudiated the claim.

                Without prejudice to the grounds taken, the OP has submitted that the accident in question was duly scrutinized and assessed by Sh.K.K.Taneja, Surveyor, who vide his report dated 18.3.2009 assessed the loss at Rs.18,711/-.  If the complaint be allowed, the amount awarded should be restricted to the amount assessed by the Surveyor (Ann.R-4).  Further, the complainant has taken 20% discount on the premium as NCB, which is a ground for repudiation of claim.  The OP has therefore prayed that the complaint be dismissed.

3]             We have heard the ld.Counsel for the parties and have also perused the evidence and documents placed on record by the parties. 

4]             At the time of arguments, it was submitted by ld.Counsel for the complainant that the complainant after realizing that he had wrongly taken NCB approached the OP to pay the amount.  The OP accepted Rs.216/- as the payment deducted towards NCB on the insurance policy issued to the complainant.  This amount was paid by the complainant to the OP on 8.4.2009.  Once, the OP has accepted this amount of NCB from the complainant, it is clear and apparent that his part of the default if any, is pardoned by them.  The complainant would now be entitled for getting the claim on the accidented vehicle from OP after their acceptance of refund of NCB.             

                However, we cannot accept the repair bills submitted by the complainant for assessing the claim in totality.  In this regard, reference must be made to the report of Surveyor placed at Ann.R-4. 

5]             The Surveyor has assessed the loss to the complainant at Rs.18,711/-.  In our view, this amount should be paid by the OP to the complainant towards his claim.  Not making payment of this amount by the OP would amount to deficiency in service especially when they have accepted the NCB amount from the complainant. 

6]             In view of the above findings, the complaint is allowed.  The OP is directed to pay Rs.18,711/- to the complainant towards the repair of the motorcycle as per report of Surveyor. The OP is also directed to pay Rs.5,000/- to the complainant as compensation as well as cost of litigation. 

                The aforesaid amounts shall be paid by the OP within 45 days from the date of receipt of certified copy of this order, failing which they shall pay the amount of Rs.23,711/- along with interest @12% per annum, from the date of the order till its actual payment to the complainant.

                Certified copies of the order be supplied to the parties free of any charge. The file be consigned to the record room after compliance.    

Announced

17^th Sept., 2010                                                             Sd/-

(LAKSHMAN SHARMA)

PRESIDENT

                                                                   Sd/-

                                       (ASHOK RAJ BHANDARI)

MEMBER

                                                                                                Sd/-

                                                    (MADHU MUTNEJA)

MEMBER

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