Brief facts of the case are that the complainant ensured his vehicle bearing registration no. WB 73A-6395 with the OP Insurance Company & paid premium of Rs.16,253/- only on 19.03.2015 vide policy No.150601/31/14/6300009185. Complainant surrendered his vehicle on 15.05.2015 to the Siliguri Motor Vehicles Department & said department issued a surrender certificate vide memo no. 86/MV dated 18.05.2015 to the complainant. As per terms & conditions of the policy complainant made a claim on 25 05.2015 before the OP for return the premium but OP sanctioned Rs.1,484/- only vide his intimation no. 150601/87/15/0000000006 dated 06.07.15.
It has been asserted by the complainant that the OP has illegally & arbitrarily sanctioned such negligible amount in favour of the complainant. Accordingly, the complainant sent a notice on 20.07.2015 through his engaged Lawyer to the OP which was duly received by the OP on 21.07.2015 but the OP did not pay any heed for payment of the claim. Hence, this case.
The OP entered appearance and contested the case by filing a written version wherein the material averments made in the complainant have been denied and it has been contended inter-alia that the case is not maintainable. It has been stated by the OP that as per written information of the complainant insurance policy of the vehicle was cancelled by the OP, but OP has retained the amount of liability portion because of the fact that if there was/is an accident which might have been occurred between the date of commencement of the policy and date of intimation of surrendering Of the vehicle to the insurer, there might be any third party claim at any point of time/and/or in future against the insurer /OP. The own damage part being optional part the owner of the vehicle may or may not take the coverage of own damage portion, and premium is refundable relating to own damage portion but the liability portion is not refundable and as the claim of the complainant has no basis so he is not entitled to get any relief as prayed for and the case is liable to be dismissed.
To prove the case the complainant has filed the following documents :-
1. Xerox copy of the policy.
2. Xerox copy of the vehicle surrender petition dated 18.5.15.
3. Xerox copy of the claim dated 25.5.15.
4. Xerox copy of the premium refund intimation voucher
5. Xerox copy of the lawyer notice dated 15.7.15.
6. Xerox copy of the delivery notice by Indian Post.
List of the documents submitted on the side of the OP:-
1. Certificate of the insurance of passenger carrying commercial vehicle policy schedule bearing no.150601/31/146300009185 in respect of vehicle no.WB73A/695.
Complainant has filed evidence in-chief.
Complainant has filed written notes of argument.
OP has filed evidence-in-chief.
OP has filed Written Notes of Argument.
Points for decision
1. Is there any deficiency in service on the part of the OP?
2. Is the complainant entitled to get relief as prayed for?
Decision with reasons
Point Nos.1 & 2 are taken up together for the brevity and convenience of discussion.
Admittedly complainant ensured his vehicle being Registration No.WB-73A/695 with the Op insurance company and paid premium of Rs.16,253/- on 19.03.2016, vide Policy No.150601/31/14/6300009185 & he surrendered the vehicle to Siliguri Motor Vehicles Department on 15.05.2015 i.e., within two months of insurance of the vehicle with the OP insurance company and obtained
a surrender certificate on 18.05.2015 form M.V. Deptt. It is also not disputed that the complainant by letter dated 25.05.2015 intimated the Op that he has already surrendered the vehicle no. WB-73A/695 to Siliguri Motor Vehicle department and he requested the OP to cancel the policy and refund him the premium immediately. After getting intimation from the complainant the OP issued a premium refund invoice voucher of Rs.1,484/- (i.e. premium refund Rs.1,321/- + service tax refund Rs.163/-).
Ld. advocate of the OP during his course of argument has submitted that the Op has retained the amount of liability i.e. statutory / third party portion because of the fact that if there was/is an accident or incident which might have been occurred between the date of commencement of the policy & date of intimation of surrendering of the vehicle to the insurer, there might be any third party claim at any point of time or in future against the insurer / OP who is bound to comply with provisions of Motor Vehicles Act.
It has been further submitted by the Ld. advocate of the OP that there are two parts of comprehensive packages insurance policy i.e. one part is own damage part and another part is liability/statutory/third party part. The own damage part being optional part the refund of premium of Rs.1,484/- of own damage portion was allowed to the complainant but third party portion is a mandatory part as per M.V. Act 1988 and IRDA guidelines and Indian Motor Tariff and the amount paid under liability/statutory third party portion is not refundable.
It is pertinent to mention that the complainant ensured the vehicle on 19.03.20165 and he surrendered the vehicle to M.V. Department, Siliguri on 15.05.2015 i.e. within two months of insurance of the vehicle and submitted his claim to the OP for refund of the premium of Rs.16,253/- & for cancelation of the insurance policy of the vehicle on 25.05.2015. If there was/is any accident caused by the vehicle and any injury/death of third party was occurred within this period of two months then it must be in the knowledge of the OP as notice will be issued by MV. Claim tribunal. But this is not the case of the OP that any such notice was issued to the Op from the claim tribunal.
That apart the Op could also make an enquiry whether the vehicle of the complainant has/had caused any accident and whether there was any third party claim for such accident or there was any FIR lodged in this regard. The OP without ascertaining or making any enquiry has retained the maximum amount as liability / third party portion on the ground that if there was/is an accident and or incident might have been occurred between the commencement of the policy & date of intimation of the surrendering of the vehicle by the complainant
to the OP, There might be any third party claim at any point of time /in future against the insurer.
Here we find that the complainant surrendered the vehicle before the MV department and within the prescribe period of seven days informed the matter to the OP and submitted his claim.
On the side of the OP a copy of India Motor Tariff has been submitted. GR-24 A of India Motor Tariff states as follows:- Cancellation of Insurance.
“(a) A policy may be cancelled by the insurer by sending to the insured seven days notice of cancellation by recorded delivery to the insured’s last known address and the insurer will refund to the insured the pro-rata premium for the balance period of the policy.
(b) A policy may be cancelled at the option of the insured with seven days notice of cancellation and the insurer will be entitled to retain premium on short period scale of rates for the period for which the cover has been in existence prior to the cancellation of the policy. The balance premium, if any, will be refundable to the insured. Refund of premium will be subjected to:
- There being no claim under the policy, and
- The retention of minimum premium as specified in the Tariff.
(c) A policy can be cancelled only after ensuring that the vehicle insured elsewhere, at least for liability only cover and after surrender of the original certificate of insurance for cancellation.
(d) Insurer should inform the regional Transport Authority (RTA) concerned by recorded delivery about such cancellation of insurance”.
Here the OP did not follow the guidelines of India Motor Tariff and offered
very negligible amount to the complainant.
The nature of refusal/refund of the premium to the complainant without assigning reason, this forum constrained to hold such activities of the OP comes within the preview of deficiency of service as provided under clause 2 (i)(g) of the Consumer Protection Act 1986. In action on the part of the OP to refund the appropriate amount after proper calculation created mental pain, agony and suffering to the complainant. Accordingly complainant is entitled to get Rs.16,253/- from the OP for the policy No150601/31/14/6300009185 and he is further entitled to get compensation of Rs.2,000/- from the OP towards mental pain and sufferings as well as harassment.
The complainant has further entitled to get litigation cost of Rs.2,000/- from the OP.
In the result, the case succeeds in part.
Hence, it is
O R D E R E D
that the Consumer Case No.90/S/2015 is allowed on contest in part against the OP with cost.
The complainant is entitled to get Rs.16,253/- from the OP for the Policy No. 150601/31/14/6300009185.
The complainant is further entitled to get Rs.2,000/- from the OP towards mental pain, agony and harassment.
The complainant is further entitle to get Rs.2,000/- towards litigation cost form the OP.
The OP is directed to pay Rs.16,253/- by issuing an account payee cheque in the name of the complainant within 45 days of this order.
The OP is further directed to pay Rs.2,000/- by issuing an account payee cheque in the name of the complainant for mental pain, agony and harassment within 45 days of this order.
The OP is further directed to pay Rs.2,000/- by issuing an account payee cheque in the name of the complainant towards litigation cost within 45 days of this order
Failing which the amount will carry interest @ 9% per annum on the awarded sum of Rs.18,253/- from the date of this order till realization
In case of default the complainant is at liberty to execute this order through this forum as per law.
Let copies of this judgment be supplied to the parties free of cost.
