Passed by Shri Atul D. Alsi, Hon’ble President.

1. The complainant has filed complaint case repudiation of insurance claim for the damages caused to the vehicle and thereby claiming compensation of Rs.9,86,938/- alongwith interest and cost of litigation.

Facts of the case, in nutshell, are as under...

2. That the complainant is a owner of Mahindra and Mahindra Scorpio bearing No.MH-49-AT-2577 from 31.8.2018 for earning his livelihood by engaging himself for the purpose of employment. The complainant vehicle was insured with op No.2 under the policy bearing No. 100193120009882 for the period between 1.9.2019 to 31.8.2020 for IDV. of Rs.7,95,602/-. On dated 19.2.2020 at about 2.30 a.m. the complainant vehicle met with an accident while returning from CBD Belapur. Tah. Panwel, Dist.Raigarh under police station Nhavashewa, New Bombay, when a dog came in front of running vehicle and the driver lost control resulted in the vehicle was collided with pole on footpath. The vehicle suffered damaged to Bonnate /Bumper carborator etc.  The outcome of accident FIR came to be registered on dated 20.2.2020 at police station Nhavashewa. The complainant intimated opposite party No.2 about the accident of vehicle and by towing the vehicle shifted to service station for repairs. As per invoice dated 16.7.2020 the expenses incurred for the repair of vehicle of Rs.3,36,938/-.  Thereafter the complaint submitted the insurance claim with relevant documents to opposite party No.2 but the opposite Party No.2 has repudiated the claim of complainant on the ground of suppression of material information about previous insurance no claim benefit. Therefore supply of false information in respective NCB the claim is closed by opposite party as No claim as per repudiation letter dated 19.8.2020.  It is the duty of insurance company to verify details of previous insurance at the time of proposal. The complainant has provided all required information to the opposite party but with intention to fabricated defence to avoid the responsibility the claim was repudiated. Therefore the present complaint is  came to be filed.
3. In response to the notice, the OP No.1 and 2  appeared before this Commission and filed its reply. In its reply, opposite party Nos.1 and 2 admitted insurance of complainant vehicle and submitted that at the time of procuring the policy the complainant had fail to give correct and proper details of previous insurance policy, the deliberate and misrepresentation of detail of NCB the complainant claim was repudiated. As per terms and condition of policy the complainant is duty bound to make correct statement in proposal form. The complainant failed to submit the earning of Rs.40000/- per month by employing the vehicle for self employment by proper documentary evidence. The complaint filed false bills of repair and therefore the complaint case deserve to be dismiss with cost.
4. The counsel for complainant submitted in his arguments that the complainant supplied true and correct information at the time of proposal. The opposite parties with intention to avoid claim closed the claim as No claim.  It is the duty of insurance company to verify from the concerned insurance companies in respect of history of insurance and if found any defect may cancel the insurance policy within a period of 15 days. Therefore the complainant is entitled for insurance claim.
5. The counsel for opposite party argued that after accident of vehicle and submission of insurance claim, during investigation it is found that the complainant suppressed the information No claim bonus.  Therefore it is a breach of terms and conditions of policy resulted in breach of principal of utmost good faith and for breach of contract the repudiation of claim does not amount to deficiency of service.
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6. The complainant vehicle bearing no.MH-49-AT-2577 insured with opposite party Nos.2 for the period 1.9.2019 to 31.8.2020. On 19.9.2020 at mid night the complaints vehicle met with an accident and intimation of accident was given to opposite party no.2. as well as the information of accident was given to the concerned police station. The complainant claim was repudiated for the reason of wrong information in case of No claim bonus was given about previous policy as per letter dated 19.8.2020.
7. After submission of proposal for insurance of policy it is mandatory duty of insurance company to verify from registration number of vehicle about details of previous insurance policy and benefit availed by the owner of vehicle and if found then on suo-moto by issuing letter the insurance policy issued to the owner shall be cancelled. Admittedly the case in hand the insurance company had not collected the insurance of vehicle by writing letter to the previous insurance company from registration of vehicle and did not cancel the policy. Till the cancellation of policy from insurance company with prescribed period of 15 days after issuance of policy, the opposite party- insurance company shall liable to pay compensation. Even if the suppression of information about No claim bonus of slab previous policy does not cancel the whole policy. The complainant submitted the cost of repairs by filing bills from authorised workshop. The suppression of information about NCB may resulting breach of one of the term and condition and not breach of or cancellation of termination of whole policy therefore the complaint in entitled for the claim on non standard basis of 75% of insurance claim against the bill of repair amount of Rs.3,36,874/- i.e Rs.2,52,655/- without awarding any interest cost and compensation to the complainant as per following order:-

ORDER

1. The complaint is partly allowed.
2. The Opposite party Nos. 1 and is directed to pay an amount of Rs.2,52,655/- against the insurance claim of complainant vehicle bearing no.MH-49-AT-2577.
3. No order as to costs.

 Copy of order be furnished to both parties, free of cost.