DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-I, U.T. CHANDIGARH

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Dharmender Balhara s/o Sh.Ved Bir Singh, R/o House No.1251, Sector 15-B, Chandigarh

…..Complainant

                 V E R S U S

1]  Reliance General Insurance Company Limited, SCO No.145-146, 2^nd Floor, Sector 9-C, Chandigarh, through its Branch Manager.

2]  Gurjeet Singh, House No.32809, Sector 46, Chandigarh. {Deleted vide order dated 03.04.2012}

                      ……Opposite Parties

CORAM:   SH.P.D.GOEL                  PRESIDENT

         SH.RAJINDER SINGH GILL       MEMBER

         DR.(MRS).MADANJIT KAUR SAHOTA  MEMBER

Argued by: Sh.R.S.Dhull, Counsel for Complainant.

           Sh.Rajneesh Malhotra, Counsel for OP.

PER P.D.GOEL, PRESIDENT

         Succinctly put, the complainant purchased Mahindra Logan vehicle bearing Regd. No.CH-04-B-5675 from OP-2, which was duly insured with OP NO.1 from 31.10.2010 to 30.10.2011 vide Ann.C-1.  The said vehicle was duly transferred in the name of complainant on 10.12.2010 vide Ann.C-2. Thereafter, the complainant vide letter dated 14.12.2010 sent an intimation to the OP Insurance Company for transfer of the policy in his name consequent to the transfer of the vehicle. The said intimation was sent through courier (Ann.C-4) as well as through UPC (Ann.C-6).

         It is averred that unfortunately, the said vehicle met with an accident with a truck near Military Cantt. Hisar on the intervening night of 28^th & 29^th Jan., 2011.  The OP Insurance Company, on receipt of the intimation, appointed a Surveyor Sh.Sehgal.  Thereafter, on the suggestion of the Surveyor, the vehicle was taken to Supreme Motors Limited, Hisar, who prepared an estimate of repair to the tune of Rs.7,59,968.78 (Ann.C-7). Then a claim was lodged with OP Company, which was illegally repudiated vide letter dated 10.3.2011 – Ann.C-8 on the ground that the complainant failed to intimate the OP Company with regard to transfer of insurance policy within 14 days of transfer of the vehicle.  Hence, this complaint.

2]       The ld.Counsel for the OP neither filed the reply & evidence inspite of availing four opportunities nor paid the imposed cost.  Hence, the defence of the OP was struck of vide order dated 10.5.2012.

3]       Complainant led evidence in support of his contentions.

4]       We have heard the ld.Counsel for the parties and have perused the record.

5]       The ld.Counsel for the complainant contended that when the complainant purchased the vehicle in question, it was duly insured with OP NO.1 w.e.f. 31.10.2010 to 30.10.2011 vide policy Ann.C-1.  He also contended that after the vehicle was transferred in the name of complainant on 10.12.2010, the OP was intimated vide letter dated 14.12.2010, sent through courier as well as UPC, for transfer of the policy in the name of complainant.     It is further contended that the said vehicle met with an accident with a truck near Military Cantt. Hisar, on the intervening night of 28/29.01.2011, which was intimated to the OP Company, who in turn appointed Sh.Sehgal as Surveyor.  It is argued that the vehicle was taken to Supreme Motors Limited, Hisar, on the suggestion of the Surveyor, who prepared an estimate of repair to the tune of Rs.7,59,968.78 (Ann.C-7).  It was lastly argued that when the complainant filed a claim with the OP, the same was illegally repudiated citing the reason that he failed to intimate the OP for transfer of the insurance policy, within 14 days of transfer of the vehicle.

6]       The defence of the OP was struck of due to non-filing of reply & evidence despite several opportunities.

7]       Now the only point for consideration before this Forum is whether the repudiation of the claim by the insurance company is legal. The answer to this is in the negative.

8]       The repudiation letter is Annexure C-8, whereby, the claim in question has been repudiated on the ground that the insurance policy of the vehicle was not transferred in the name of complainant, on the date of accident.

9]       The complainant has placed on record Ann.C-2, copy of the R.C. of vehicle No.CH-04-B-5675 in the name of complainant.  Ann.C-3 is the letter issued by Registering and Licensing Authority, U.T., Chandigarh showing that the vehicle in question was transferred in the name of complainant on 10.12.2010. The learned Counsel for the complainant submitted that intimation letter placed at page No.20 as  Ann.C-5, was duly sent to the OP Company through courier vide Receipt Ann.C-4 as well as through UPC Ann.C-6.

10]      The courier receipt as well as UPC duly proved that the intimation was duly sent to the OP Company.  Moreover, the UPC receipt Ann.C-6 has been issued by the Government official in discharge of his official functions, therefore, it has got legal sanctity. More so, there is no other evidence on the file from the side of the OP insurance company to prove that the courier receipt Ann.C-4 & UPC receipt – Annexure C-6 are fabricated or forged documents. If we count 14 days from 14.12.2010 to 18.1.2010, it proves that the intimation was sent to the insurance company within the stipulated period of 14 days from the transfer of the vehicle in the name of the complainant. In view of this, it is held that the complainant had sent the intimation letter to the insurance company after transfer of the vehicle in his name within 14 days.

11]      Now, it is established on record that the complainant has given the intimation with regard to transfer of the vehicle within 14 days, as per provisions contained in GR-17 and Section 157 of Motor Vehicles Act, therefore, we are of the opinion that the repudiation of the claim by the insurance company vide repudiation letter (Ann. C-8), dated 10.3.2011, is illegal.

12]      Annexure C-1 is the insurance policy pertaining to vehicle No.CH-04-B-5675 qua which the vehicle is insured for Rs.4.00 lacs valid from 31.10.2010 to the midnight of 30.10.2011. The complainant has lodged the FIR No.102, dated 06.02.2011 with regard to said accident with the Police Station, Hissar Sadar, Hissar. The estimate towards the repair of the vehicle in question is for Rs.7,59,968.78 (Ann.C-7). The complainant has filed his affidavit to prove that it is a case of total loss.  The said fact, duly supported by an affidavit, has gone unrebutted & uncontroverted.  Thus, it is held that the complainant is entitled for the insured amount of Rs.4.00 lacs minus depreciation value, as per the terms & conditions of the policy.

13]      As a result of the above discussion, the complaint is allowed and the OP is directed to pay Rs.4.00 lac to the complainant, being the insured value of the vehicle after deducting the depreciation value, as per the terms and conditions of the insurance policy, along with interest @12% p.a. from the date of repudiation of the claim i.e. 10.3.2011 till its actual payment. The OP is also directed to pay Rs.15,000/- as costs of litigation. 

14]      This order be complied with by the OP within a period of 30 days from the date of receipt of its certified copy, failing which the OP shall be liable to pay the awarded of Rs.4.00 lacs along with interest @ 15% p.a. instead of 12% p.a. from date of repudiation of the claim i.e. 10.3.2011 till its realization besides Rs.15,000/- as litigation costs.

        The certified copies of this order be sent to the parties free of charge. The file be consigned.