Haryana

Karnal

CC/71/2018

Bharat - Complainant(s)

Versus

Oriental Insurance Company Limited - Opp.Party(s)

Babli Rani

05 Apr 2019

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM KARNAL.

 

                                                          Complaint No. 71 of 2018

                                                          Date of instt. 20.03.2018

                                                          Date of Decision 05.04.2019

 

Bharat aged about 35 years son of Shri Subhash resident of House no.229/2, Basant Vihar, Karnal. (Adhar no.2377557641601)

 

                                                                         …….Complainant

                                        Versus

 

1. Oriental Insurance Company Limited, having its Divisional Office at Karnal through its Divisional Manager.

2. H.D.F.C. Bank Ltd. Kunjpura Road, Karnal through its Branch Manager.

 

                                                                        …..Opposite Parties.

 

           Complaint u/s 12 of the Consumer Protection Act. 

 

Before    Sh. Jaswant Singh……President. 

      Sh.Vineet Kaushik ………..Member

                Dr. Rekha Chaudhary…….Member

 

 Present:  Smt. Babli Rani Advocate for complainant.

                  Smt. Sarij Bala Advocate for opposite party no.1.

                   Shri Amit Munjal Advocate for OP no.2.

 

                    (Jaswant Singh President)

ORDER:                    

 

                        This complaint has been filed by the complainant u/s 12 of the Consumer Protection Act 1986 on the averments that the complainant has purchased a Activa scooter bearing Temporary no.HR-99ZV-(HQ)-TP1531, Engine no.JF50E83220067 and chasis no.MEUJF50HF221493 after taking loan from the OP no.2, vide loan account no.42815287. After purchasing said vehicle the complainant got insured the said vehicle from OP no.1, vide Insurance policy no.261301/31/2017/6306 which was valid from 3.10.2016 to 2.10.2017. The said insurance policy covers the risk of said vehicle to the tune of Rs.47556/-. The said vehicle was stolen on 20.11.2016 qua which an FIR no.1022 dated 20.11.2016 was registered under section 379 IPC in the Police Station Civil Lines, Karnal. Immediately, after the theft of said vehicle, the complainant lodged his claim with the OP and requested for paying the claim amount. The official of the OP got signed certain documents from the complainant and got completed certain formalities from the complainant and assured that the insurance benefit will be given to the applicant within 2 months. But till date same has not been given despite repeated requests made to the OP by the complainant. The complainant on the demand of the OP no.1 also submitted the original keys, original policy, retail invoices, bank statement and untraced report in the office of the OP but despite of the receipt of said report the OP no.1 has not been paying the amount of compensation to the complainant. In this way there was deficiency in service on the part of the OPs. Hence complainant filed the present complaint.

2.             Notice of the complaint was given to the OPs, OP no.1 appeared and filed written version raising preliminary objections with regard to locus standi; maintainability and complaint is premature. On merits, it is pleaded that the complainant had failed to register the Activa Scooter as per requirement of RTO and as such complainant had failed to submit the original RC of the Activa Scooter with the OP no.1 and further failed to transfer the Activa Scooter in the name of the OP no.1, uptill this time. The number of the Activa Scooter number as mentioned in the complaint is HR-99ZV (HQ)-TP1531, which is temporary one and only valid for one month. Hence as per terms condition of claim settlement, the OP no.1 may repudiate the claim of the complainant, as the complainant is not the legal owner of the vehicle in question. It is further pleaded that the OP no.1 has sent notices dated 12.1.2017, 2.3.2017 and 24.5.2017 for completing the formalities and lastly letter dated 11.04.2018 was handed over to the complainant by hand. When the complainant had not given any reply to complete the formalities, then a registered notice dated 01.05.2018 was also given. But the complainant failed to complete all the formalities. Only one key was handed over to the OP while requirement of two key is needed. No certified copy of untraceable report issued by the court was submitted as alleged. The OP is ready to disburse the claim of the complainant if he performed all the formalities as mentioned. There is no deficiency in service on the part of the OP no.1 and prayed for dismissal of the complaint.

3.             OP no.2 appeared and filed its written version raising preliminary objections with regard to locus standi; cause of action and jurisdiction. On merits, it is pleaded that an amount of Rs.50,486/- was financed to complainant by OP no.2 for purchasing of Two Wheeler. Complainant has to repay the same in 24 installments of 2644/- starting from 05.11.2016 till 05.10.2018. For getting vehicle on finance complainant executed a loan agreement no.42815287 after understanding the terms and conditions of the same. Complainant is defaulting the installment without anything wrong on the part of the OP no.2. Therefore, OP no.2 is legally entitled to recover the same as per law. It is further pleaded that as per terms and conditions of loan cum hypothecation agreement OP no.2 initiated arbitration proceeding against complainant and in the proceeding arbitration award dated 31.05.2018 has been passed against the complainant. It is further pleaded that complainant for the purchase of his vehicle entered into loan-cum-hypothecation Agreement with Bank and it’s a pre requisite condition of hypothecation agreement in case of any loss/claim, financer have the first charge over the claim qua amount balance. Hence OP reserves his right to receive the claim amount.

4.             Complainant tendered into evidence his affidavit Ex.CW1/A and documents Ex.C1 to Ex.C12 and closed the evidence on 19.11.2018.

5.             On the other hand, OP no.1 tendered into evidence affidavit of Dinesh Kumar Jain Ex.RW1/A and documents Ex.R1 to Ex.R10 and closed the evidence on 20.12.2018. OP no.2 tendered into evidence affidavit of Gagandeep Singh Ex.OP2/A and documents Ex.OP2/1 to Ex.OP2/3 and closed the evidence on 22.02.2019.

5.             We have appraised the evidence on record, the material circumstances of the case and the arguments advanced by the learned counsel for the parties.

6.             The case of the complainant is that he has purchased a Activa scooter bearing Temporary no.HR-99ZV-(HQ)-TP1531, Engine no.JF50E83220067 and chasis no.MEUJF50HF221493 after taking loan from the OP no.2, vide loan account no.42815287. After purchasing said vehicle the complainant got insured the said vehicle from OP no.1, vide Insurance policy no.261301/31/2017/6306 which was valid from 3.10.2016 to 2.10.2017. The said vehicle was stolen on 20.11.2016 and an FIR no.1022 dated 20.11.2016 was lodged in the Police Station Civil Lines, Karnal Intimation was given to the OPs regarding theft. The complainant submitted his claim with OP no.1 but the claim of the complainant was not settled by the OP no.1.

7.             On the other hand, the case of the OP no.1 is that the claim of the complainant was duly proceeded. Complainant had failed to submit the original RC of the Activa Scooter with the OP no.1. The Activa Scooter is having Temporary no. so RC is required, as he had purchased the vehicle in question on 3.10.2016, so the complainant must apply for permanent number within one month of its purchase, so the complainant had not complied with the terms of Registration Authorities as well as of the insurance policy.  Hence as per terms condition of claim settlement, the OP no.1 may repudiate the claim of the complainant, as the complainant is not the legal owner of the vehicle in question. It is further pleaded that the OP no.1 has sent notices dated 12.1.2017, 2.3.2017 and 24.5.2017 for completing the formalities and lastly letter dated 11.04.2018 was handed over to the complainant by hand. When the complainant had not given any reply to complete the formalities, then a registered notice dated 01.05.2018 was also given. But the complainant failed to complete all the formalities. The OP no.1 is ready to disburse the claim of the complainant if he performed all the formalities as mentioned.

8.             The case of the OP no.2 is that complainant for the purchase of his vehicle entered into loan-cum-hypothecation Agreement with Bank and it’s a pre requisite condition of hypothecation agreement in case of any loss/claim, financer has the first charge over the claim qua amount balance. Hence OP reserves his right to receive the claim amount.

9.             Admittedly, the vehicle in question was stolen during the subsistence of policy. Claim of the complainant was proceeded and OP demanded the required documents for releasing the claim. As per the version of the OP, the documents were not supplied by the complainant, but as per complainant he has already handed over the documents to the OP as demanded by him. Both the parties blamed each other.

10.            From the letters written by OP to the complainant, it is clear that the complainant has not submitted required documents to the opposite parties, which were necessary for processing the claim.  The OP no.1 has not repudiated the claim of the complainant, rather his claim was closed for not submitting the documents necessary for processing the claim. The complainant should submit these necessary documents to the OPs so that his claim may be processed.

11.            In the present case, OP no.2 is a financer of the vehicle in question. Hence firstly he has right to take the awarded amount.

12.            In view of the aforesaid facts and circumstances, we dispose off the present complaint with the direction to complainant to submit the required documents as mention in the letters dated 12.01.2017, 2.3.2017 and 24.5.2017 to the OP no.1 within 15 days from the receipt of copy of this order. Complainant is further directed to get transferred the vehicle in question in the name of the OP no.1 and thereafter we direct that the OP no.1 to release the claim amount within 45 days from the date of receipt of documents. If this amount is not paid within stipulated period then this amount will carry interest @ 9% per annum from the date of filing the complaint till its realization. We direct the OP no.1 to credit the insured amount  in the loan account of the complainant with the OP no.2 and OP  no.2 is directed to adjust the awarded amount in his loan account if any outstanding against him. The complaint stands disposed of accordingly. The parties concerned be communicated of the order accordingly and the file be consigned to the record room after due compliance.

Announced

Dated:05.04.2019

                                                                       

                                                                  President,

                                                           District Consumer Disputes

                                                           Redressal Forum, Karnal.

               

        (Vineet Kaushik)          (Dr. Rekha Chaudhary)

            Member                               Member