D.o.F:21/06/2010
D.o.O:4/12/2010
IN THE CONSUMER DISPUTES REDRESSAL FORUM, KASARAGOD
CC.NO. 145/10
Dated this, the 4th day of December 2010
PRESENT:
SRI.K.T.SIDHIQ : PRESIDENT
SMT.P.RAMADEVI : MEMBER
C.Y.Thasleem, S/o P.K.Yousuf,
Chalakkara House, Po.Urdoor, : Complainant
Via Mulleria,Kasaragod.
(Adv.K.A.Abdul Nazar,Kasaragod)
1. The Branch Manager,
National Insurance Co.Ltd,
Ernakulam Branch, South Junction, : Opposite parties
Chittoor Road,Cochin.
2. The Branch Manager,
National Insurance Co.Ltd
3rd floor,High Lane Plaza,M.G.Road,Kasaagod
(Adv.C.Damodaran,Kasaragod)
ORDER
SRI.K.T.SIDHIQ : PRESIDENT
Complainant is the RC owner of the L&T Bare Backhoe Loader Excavator bearing Reg.No.KL143G8832 insured with Ist opposite party. The complainant obtained an extended warranty insurance from opposite party for the Excavator. As per the terms of extended warranty policy the insurer is liable to compensate the insured in case of break down of the equipment. On 20/10/09 ie, during the period of warranty the excavator stopped functioning . The complainant contacted opposite party. The technicians of the authorized service center of the excavator M/s Kadoor Sales Corporation inspected the vehicle and found that RH side rear axle shaft of the excavator was broken and the planetary gear assembly were also damaged. They replaced damaged parts of the excavator and issued a bill for ` 80447/- and charged ` 2500/- as service charges. On 22/10/09 the complainant paid entire amount ` 82947/- to the service provider and they promised the complainant that they will refund the amount as soon as the compensation is received from the insurer. On 21/10/09 ,the complainant submitted claim form along with bill and photographs of the replaced part to Ist opposite party . The Ist opposite party sent a cheque for ` 33312/- to the Kadoor Sales Corporation along with endorsement that claim for carrier assembly gasket and lock shaft are not eligible for warranty and demanded to sign a satisfaction voucher sent by them. Thus the opposite party arbitrarily reduced the amount which they were liable to pay under the warranty. The complainant approached opposite parties several times to convince the fact. The Kadoor Sales Corporation issued a letter to the opposite party stating that the parts replaced were covered as per the warranty. But opposite parties were not ready to pay the actual dues. The acts of the opposite parties amount to deficiency in service. Hence the complaint claiming the total amount of 80447/- with compensation of ` 50,000/- and cost of this proceedings.
2. According to opposite parties the policy is issued based upon Memorandum of understanding signed by L&T dealer dt.26/4/06. The planetary gear assembly was not given insurance coverage. Rear Axle shaft was covered and the opposite party has passed the claim in respect of damage caused to rear axle shaft and offered a sum of ` 33312/- to the complainant. The dealer as per letter dt.1/2/10 recommended for payment in respect of the planetary gear assembly stating that planetary gear assembly is part of rear axle and extended warranty is give to the gear assembly also. The stand taken by the dealer is not as per the MOU signed by them and as per the terms and conditions of policy but only to get easy payment from Ist opposite party and thereby to help the complainant. According to dealer ie Kadoor Sales Corporation the damage was not caused because of tear and wear. Ist opposite party has sought technical opinion from L&T Engineer Sri David and according to him” Rear axle shaft got broken from the shaft top side and spiner area which is mentioned on the planetary gear assembly. The broken pieces got struck between the planetary gear shaft resulting in planetary gear teeth sheared off and broken. This is a consequential damage after shaft failure only but not the wear and tear. Hence it is not covered as per the warranty. As per the list of component coming under the Extended warranty mentioned in the MOU dt.26/6/06 planetary gear assembly is not mentioned. Therefore the claim is not honoured and there is no deficiency in service on the part of the opposite parties.
3. Complainant filed proof affidavit in support of Exts A1 to A4 marked. On the side of opposite parties Exts B1 to B5 marked. Both sides heard. Documents scrutinized.
4. According to counsel for the complainant extended warranty covers’ transmission’ . In mechanics a ‘transmission’ is the gear system that transmits mechanical power from an engine via a drive shaft to an axle. According to a typical automotive ‘automatic transmission’ includes a hydro dynamic 3 element torque converter with locking clutch. A planetary gear system provides overdrive in 4th or higher gear and hydraulic and electro hydraulic control system. Therefore the planetary gear assembly is a part of transmission that is covered as per extended warranty. Moreover in Ext,B5 Mr.A.C.David the expert attached to L &T also reported that the rear axle is included in the extended warranty items and the planetary gear carrier assembly is the part of the rear axle. The manufacturers do give warranty on the damages of this item during the warranty period. Ext.B4 is the Memorandum of Understanding executed between M/s Kadoor Sales Corporation and Ist opposite party. As per the terms and conditions of the said MOU, components coming under the extended warranty includes transmission . The learned counsel for the complainant produced various literature on Mechanical engineering dealing with transmission. The said authorities say that ‘transmission’ includes planetary gear assembly . Therefore, it is clear that opposite parties are reduced the claim of the complainant without any bonafides and therefore they are liable to pay the entire amount claimed by the complainant excluding the service charges.
In the result, the complaint is allowed and the opposite parties are directed to pay ` 80447/- together with a cost of `2000/-. Time for compliance is 30 days from the date of receipt of copy of the order failing which opposite parties shall pay interest @12 % for ` 80447 from the date of complaint till payment.
Exts;
A1- copy of Extended warranty insurance
A2-1/2/10- copy of letter issued by OP1 to Kadoor Sales Corp.
A3-22/10/09- Bill voucher
A4-copy of identity card
B1- policy form
B2-Copy of contingency insurance policy
B3-copy of Ext.A1
B4-copy of memorandum of understanding
B5- copy of e-mail communication of L&T Engineer
MEMBER PRESIDENT
eva
