Orissa

Jagatsinghapur

CC/79/2020

Sri Padma Charan Sethy - Complainant(s)

Versus

The Divisional Manager New India Assurance company Ltd - Opp.Party(s)

Mr.M.R.Nayak

22 Aug 2022

ORDER

                                                                                               JUDGMENT

                 Complainants have filed this consumer complaint U/s.12 of C.P. Act, 1986 seeking following reliefs;

            “Direct the opposite parties No.1 & 2 to settle the claim of the complainants for Rs.12,80,000/-, quash the demand notice dtd.11.02.2020 issued by the opposite party No.3 and opposite parties to pay compensation of Rs.2,00,000/-  and litigation expenses of Rs.20,000/-”.

            The brief fact of the case is that the complainant availed a loan for a sum of Rs.11,99,395/- from the opposite party No.3 on 06.02.2017 for purchase of Innova Euro IV /Car bearing Regd. No.OD-05-Z-1747 by executing loan agreement No.NCTK 1096945. As per the terms of the loan agreement, the loan amount along with interest there upon is to be repaid in 60 equated monthly installments of Rs.25,478/-. As such the last installment due was in the month of March, 2022. The opposite party No.3 has not provided copy of the loan agreement dtd.06.02.2017 to the complainant in spite of his repeated personal approaches. After availing loan the complainants continued to repay the installment dues to the opposite party No.3 regularly. But to their misfortune the car met with an accident on 22.7.2018 causing extensive damages. The vehicle is duly insured with the opposite party No.1 & 2, accordingly complainants claim of Rs.12,80,000/- before the insurance company on 22.8.2018 in consonance with the required amount for repairing of the vehicle with zero depreciation.  The opposite party No.2 deputed surveyor who fixed the salvage amount of Rs.3,50,000/- and value of the vehicle at Rs.9,30,000/-. The complainant No.1 intimated the opposite party No.2 that he is not satisfied with the claim settlement proposal dtd.30.11.2018 as he is unable to fulfill certain conditions of the said letter dtd.30.11.2018 as nobody is agreeing to purchase the salvage amount of Rs.3,50,000/- and the complainant cannot arrange Rs.8,40,000/- for repayment of entire loan dues of the financer and receive the NOC form them for cancellation of R.C. Book of the vehicle.

The opposite party No.1 & 2 filed written version stating as under;

The claim of the complainant was closed as no claim due to non-cooperation of the require documents as such question of deficiency in service on the part of the opposite parties does not arise at all. The complainant have made multiple prayer against the opposite parties as well as against opposite party No.3. During the currency of the insurance policy the vehicle of the complainant met with an accident on 22.7.2018 and was damaged for which the complainant lodged the claim in writing with the opposite parties on 30.7.2018. After receipt of the claim intimation the opposite parties had deputed the duly license surveyor for survey and assessment of loss, who had submitted his report on 02.11.2018 wherein he had assessed the loss on total loss-cum-net of salvage basis which comes to Rs.9,30,000/- The complainant vide letter dtd.05.11.2018 has accepted the assessment done by the duly license surveyor for Rs.9,30,000/- on the basis of net of salvage and had accepted the wreck value as Rs.3,48,000/- and undertook to submit the cancellation RC after updating the same from RTA. After receipt of the survey report, the declaration note as well as the undertaking of the complainant, the competent authority of the opposite parties finally agreed to settle the claim of the complainant on the basis of the report of the surveyor and sent the letter dtd.30.11.2018 calling upon the complainant to submit the documents as per the list given below for release of the approved amount at the earliest.

1. RC Book in original with cancellation endorsement from RTA.
2. Loss voucher duly discharged by both insured and financer with self declaration.
3. An affidavit stating that “No third party injury or death occurred arising out of this accident and also no property damage to any third party occurred.”
4. Original policy copy.
5. NOC from the Financer.

The complainant failed to submit the documents as per letter dtd.30.11.2018 another letter was issued to him on 24.01.2019 calling upon him to comply the letter dtd.30.11.2018 and to submit the documents for release of payment at the earliest. Again on dtd.06.3.2019 the opposite parties issued letter as the final reminder with the condition that in case of non-reply/compliance it will be constrained to close the file as per norms. In spite of repeated letters and reminder when the complainant failed to submit the documents as required by the opposite parties in their letter dtd.30.11.2018 the claim of the complainant was closed as no claim and the fact of closure of his claim was communicated to him vide letter dtd.30.3.2019.

Notice was issued to opposite party No.3 and he was set ex-parte on 02.6.2022.

The vehicle in question was purchased on availing loan of Rs.11,99,395/- from opposite party no.3. The settlement was done by opposite party No.1 & 2 on the basis of report of surveyor amounting of Rs.12,80,000/- and the same was insured through opposite party No.1 & 2. After the accident the damaged vehicle is within the custody of opposite party No.3 who is sleeping and charging of Rs.200/- per day towards stockyard charge and has initiated proceeding by engaging Rahul Vardwaj & Co. as arbitrator as per Sec.12 (1) of Arbitration and Conciliation Act of 1996. The vehicle which is of the model of 2017 registered on 08.3.2017 is lying idle in the garage since July, 2018 after facing an accident on 22.7.2018. The policy No.55040 231703000002180 was in force covering the period from 04.02.2018 to 03.02.2019. The opposite party No.2 deputed the surveyor B.D. Ray who fixed the salvage amount of Rs.3,50,000/- and settled the claim of Rs.9,30,000/-. The opposite party No.1 vide letter dt.30.11.2018 asked the following documents;

1. RC Book in original with cancellation endorsement from RTA.
2. Loss voucher duly discharged by both insured and financer with self declaration.
3. An affidavit stating that “No third party injury or death occurred arising out of this accident and also no property damage to any third party occurred.”
4. Original policy copy.
5. NOC from the Financer.

On receipt of the said letter the complainant on 21.01.2019 stated as under;

            “I Padma Charan Sethy, S/o. Giridhari Sethy of At/P.O.- Paradeep garh, P.S. Paradeep Lock, dist.- Jagatsinghpur beg to state that the discussion with surveyor Mr. B.D. Ray that the Salvage amount of Rs.3,50,000/- (Rupees Three Lakhs Fifty Thousand Only) fixed by surveyor Mr. B.D. Ray and my vehicle value of Rs.9,30,000/- (Rupees Nine Lakhs Thirty Thousand Only).

As per your term condition cancellation of original RC Book of from RTA- OD 05 Z 1747 as a result nobody has agreed to purchase this vehicle and to give me the Salvage amount of Rs.3,50,000/- (Rupees Three Lakhs Fifty Thousand Only).

So I want to repair this vehicle without cancellation of RC, with my claim amount of Rs.12,80,000/- (Rupees Twelve Lakhs Eighty Thousand Only) in zero depreciation and if any excess amount will spend I will be responsible for that.

Hence I am requesting to you kindly grant order to repair my vehicle & sanction my claim amount of Rs.12,80,000/- in zero depreciation, and for this said act of your kindness I shall be highly obliged to you.”

After receipt of letter from the complainant the opposite party No.1 to without application of mind again directed to comply the contents of letter dtd.30.11.2018 for release of payment.

The complainant has purchased the vehicle through finance the vehicle has been damaged within one and half year when almost 70 to 75% loan amount is pending. In order to get the NOC from the financer i.e. opposite party no.3, the complainant has to clear all the dues to get the NOC. When a consumer is purchasing a vehicle on higher purchase scheme it is presume that he has no sufficient money for that vehicle, had it been with the consumer, he could have purchase the vehicle by paying from his own pocket. When the complainant has intimated the opposite party No.2 that he want to repair the vehicle and it was within the knowledge of opposite party No.2 that the vehicle in question is hypothecated to opposite party No.3, the amount could have been released in favour of finance company and the vehicle could have been released in favour of the complainant allowing him to repair the vehicle without cancellation of RC Book.

The intention of legislation is to decrees the litigation and not to create/increase the litigation without taking into consideration the situation, the plight of the complainant and accessing the situation in a realistic manner, the opposite party No.2 has remained adamant and without application of mind reply to comply the contains of letter dt.30.11.2018. In the meantime due to out brake of Covid-19 everything has remained stand still and the vehicle is lying in the garage and custody of opposite party No.3, who is also sleeping with the policy of wait and watch.

All concerned are adamant in their views and perception without trying any method to resolve the issue. Keeping in view the peculiar situation and in order to resolve the dispute for welfare of all concerned we direct the opposite party No.1 & 2 to pay the entire insured amount to opposite party No.3. The opposite party No.3 shall return the damaged vehicle without asking for any charge to the complainant and also issue NOC in favour of complainant, uwho will repair and use the vehicle. The opposite party No.3 shall not claim any other charge except the insured amount as he has failed to appear before this Commission and sleeping over the matter. The opposite party No.3 shall not claim any other charge like repossession, stockyard charge etc. from the complainant. The entire exercise shall be completed within two months from the date of receipt of the order. With the aforesaid observation and direction the consumer complaint is disposed of. No cost.

 

            Pronounced in the open Commission on this 22^nd August, 2022.