Delhi

North

CC/47/2021

AASHISH WADHWAN - Complainant(s)

Versus

ORIENTAL INSURANCE COMPANY LTD. - Opp.Party(s)

SAURABH D. KARAN SINGH & KANIKA JAIN

13 Dec 2023

ORDER

District Consumer Disputes Redressal Commission-I (North District)

[Govt. of NCT of Delhi]

Ground Floor, Court Annexe -2 Building, Tis Hazari Court Complex, Delhi- 110054

Consumer Complaint No.: 47/2021

In the matter of

 

Aashish Wadhawan

S/o Sh. Virender Nath Wadhawan

2, Sandesh Vihar, Pitampura,

New Delhi-110034.                                        …                                   Complainant

                                                          Vs

Oriental Insurance Co. Ltd.

A-25/27, Asaf Ali Road,

New Delhi-110002.                                         …                               Opposite Party

ORDER/

13/12/2023

Ashwani Kumar Mehta, Member:

 

1.       The present complaint has been filed under Section 35 of the Consumer Protection Act, 2019. By way of the present complaint, the Complainant has alleged deficiency of services, unfair trade practices and deliberate dishonest conduct exhibited by the Opposite Party [hereinafter ‘OP’] in refusing to pay the claim amount of Rs.32,84,550/- under the Policy No.214300/31/2020/1532 insuring the Vehicle No. DL-10- CH 6698 for the period starting from 11.02.2020 to 10.02.2021. It has been alleged that the Complainant had purchased the said Policy through online portal of the OP and had also opted for the ‘Nil Depreciation Cover/ Return to Invoice Cover’ but the OP has wrongly, illegally and dishonestly partially  allowed the claim of the Complainant only in respect of Rs.18,80,444/- without taking into account the ‘Nil Depreciation Cover and Return to Invoice Cover’ in  which case the Complainant becomes entitled to Rs.32,84,550/- (excluding interest/ damages for late payment). It has further been alleged that an add on premium of Rs.22,665/- was charged under the head ‘Nil Depreciation Cover’ and Rs.11,295/- was charged under the head ‘Return to Invoice Cover’.

 

2.       The complainant vehicle was stolen on 28-05-2020 and the OP was informed vide email dated 28-05-2020 and FIR was also lodged on 28-05-2020. In response to the email dated 28-05-2020, the OP informed the complainant on 24-06-2020 to submit the claim form which the complainant had submitted vide email dated 24-06-2020 claiming Rs.32,84,550/- from OP.  Thereafter, the OP informed the Complainant, vide email dated 03.09.2020 that the claim has been kept' pending for the want of the following documents:-

i.             Final untraced report from the e-court;

ii.            Receipt of registration charges and Road Tax paid by my client;

iii.           Loan closure statement confirming complete payment of the loan amount.

 

The OP had also raised a query as to why the complete chassis number was not given in the FIR?

 

3.       The Complainant replied to the aforesaid email on 04.09.2020 explaining each and every query and furnished the loan closure statement to the OP. This email was acknowledged by the OP on 18.09.2020. The order passed by the Ld. Court accepting the *Untraced report was also communicated to the OP by the Complainant. Since no response was received from the OP by the Complainant, the complainant kept on reminding the OP through emails and personal visits to the OP. Finally, vide email dated 05.01.2021, the OP informed the Complainant that the claim has been passed for a lesser amount of Rs.18,80,444/- instead of Rs.32,84,550/-. The complainant has alleged that upon being asked as to the reason for the decreased amount of the claim, the OP gave completely frivolous and vexatious reasons which exhibit that the OP did not have the intention to honour the claim since inception. Due to the actions/ omissions on the part of OP, the Complainant was left without a vehicle and had to be procure a vehicle on rent. The Complainant has spent nearly Rs.1,00,000/- on the rental charges of the vehicle after 10.10.2020. Apart from the above, as a direct cause of OP’s un-professionalism and unethical business practices, the Complainant had to travel in private cabs exposing himself to the deadly virus. Complainant’s business is based out of New Delhi and Jodhpur. The nature of work of Complainant demands that he travels between New Delhi and Jodhpur on regular basis. Due to OP’s actions/ omissions; Complainant’s business has also suffered.

 

4.       Therefore, the Complainant has filed this complaint praying for directions to the OP to:-

1. Pay the claim amount of Rs.32,84,550/- under the insurance Policy;
2. Pay the damages for harassment/ unethical/ unprofessional conduct exhibited by the OP of Rs.3,00,000/- with interest on amount as damages for harassment/ unethical conduct/ unprofessionalism exhibited by the OP;
3. Pay pendent lite interest to the Complainant on Rs,32,84,550/- at the rate of 9% p.a;
4. Pay future interest to the Complainant on Rs.32,84,550/- at the rate of 12% p.a;
5. The costs and legal expenses of Rs.1,00,000/- to the Complainant;

5.       In support of the allegations levelled in the complaint, the Complainant has also filed the copies of RC of Vehicle No.DL10CH6698, FIR No.011609 dated 28.05.2020 registered with E-Police Station, Policy document dated 07.02.2020 alongwith the schedule of premium, terms & conditions of the Private Car Package Policy, Order dated 22.09.2020 passed by the Ld. Trial Court accepting the ‘Untraced’ report and Email conversation with the Opposite Party.

 

6.       Accordingly, notice was issued to the OP and in response, the OP has filed its reply denying that it has wrongly, illegally and dishonestly disallowed the claim of the Complainant only in respect of Rs.18,80,444/- without taking into account the NIL Depreciation Cover and Return to Invoice Cover in which case the Complainant becomes entitled to Rs.32,84,550/- excluding interest/ damages for late payment. It is further submitted that as per the policy, terms and conditions alongwith the circular regarding Return to Invoice is applicable for first two years renewal of new vehicle while the claim is lodged after in the third renewal of policy and the policy was underwritten and issued by the Complainant himself, as admitted in the complaint, through the online portal, which is against the policy terms & conditions for which the OP is not liable for the RTI Cover. The true copy of the policy, terms and conditions alongwith the circular regarding Return to Invoice are annexed as Annexure-A (Colly) with the reply.

 

7.       It is further contended by the OP that the above mentioned insurance cover under the policy is subject to conditions, clauses, warranties, exclusions, endorsements as emblazoned in the policy schedule and circular regarding Return to Invoice. The OP has also filed copy of Circular No. HO/Motor U-W/2-022-23/CR-8511 dated 27.07.2022 which is relevant to Clarification on Return to Invoice (RTI) Cover for Motor Policies referring original Circular No. HO/ Motor U-W/2014-15/CR-6916 dated. 1^st July 2014, copy of which is also filed.

 

8.       The parties have also filed rejoinder and evidence in the matter and the complaint has, accordingly, been examined on merits on the basis of the documents/evidences and material available on records and it has been observed that the OP has sent approval of the claim vide email dt.05.01.2021 for Rs.18,80,444/- to the complainant subject to compliance of following requirements but the complainant has preferred to raise a consumer dispute instead of complying the requirements:-

1. Letter of subrogation, Indemnity and undertaking on Rs.100/- Stamp Paper each duly notarised.
2. Acknowledged copy of Letter to Police Authorities requesting them to handover the above stolen vehicle to our insurance Company, if recovered by the police authority.
3. Discharge voucher
4. Transfer the RC in the name of Oriental Insurance Co. Ltd.
5. Affidavit for online FIR.

 

9.       It has also been found from the perusal of Circular No. HO/Motor U-W/2-022-23/CR-8511 dated 27.07.2022 and original Circular No. HO/ Motor U-W/2014-15/CR-6916 dated. 1^st July 2014 regarding Return to Invoice (RTI) Cover for Motor Policies that “Return to Invoice” cover is applicable for first two years renewal of new vehicle while claimant claim is lodged after third renewal of policy of the vehicle. It is further clarified that Add on cover is available up to 3 years age of the vehicle calculated from the date of invoice/ date of registration of the vehicle, whichever is earlier and in this case, the date of invoice is 10/02/2017 and date of registration is 11/02/2017 and the theft of the vehicle has taken place on 28-05-2020 after the date of expiry of three years from the date of invoice/registration. As such, the RTI cover is not applicable in this case.

 

10.     It is also relevant to note that the policy was bought/renewed and underwritten by the Complainant himself online, as admitted in the complaint, through OP’s portal. We all are aware about the procedure of online purchase through any vendor’s website/portal wherein we are always asked to undertake that we have gone through the terms and conditions applicable on the purchase and only after clicking tick on the box, specified for acceptance/undertaking, we can proceed further for buying the desired product(s). Same procedure is also applicable in this case and the complainant was supposed to go through all the aspects of terms & conditions and different add on covers like RTI, Zero Dep. etc available on the OPs website/portal before accepting the terms & conditions of the renewal of the policy and all other aspects of different add on covers. Since the complainant has accepted the terms & conditions before proceeding to buy the OP’s product i.e. Private Car Package Policy and add on cover (s), the OP is not liable to grant benefits falling under RTI Cover.

 

11.     In view of the above facts and circumstances, we are of the considered view that the OP insurance company has rightly assessed the claim of the complainant, to the extent of Rs.18,80,444/- i.e. IDV mentioned in the policy,  as communicated in the email dated 05-01-2021 to the Complainant subject to certain formalities.

12.     Since no deficiency on the part of OP is observed, the complaint is dismissed. However, we direct the OP to immediately release Rs.18,80,444/- subject to complying the requirements by the complainant in terms of the  email dated 05-01-2021.

13.     Order be given dasti to the parties in accordance with rules. Order be also uploaded on the website. Thereafter, file be consigned to the record room.

 

ASHWANI KUMAR MEHTA                                           HARPREET KAUR CHARYA

Member                                                                                Member       

                                                 DCDRC-1 (North)                                                           DCDRC-1 (North)   

                                                           

DIVYA JYOTI JAIPURIAR

President

DCDRC-1 (North)