Mr. J. A. Sangma, President – In January 1991 the complainant took the finance from Defendant No. 3 and purchased a new Tata truck for Rs. 3,85,256/- under Hire Purchase Scheme from Defendant No. (4). It was registered as AS-01/A-4739 and insured with Defendant No. 1 and 2 for Rs. 3,50,000/-. The Insurance Policy was valid upto 21-3-1993.

 

On 8-4-92 the truck met with an accident in Shillong dawki Road by falling into 3000 feet steep gorge and smashed into pieces causing total loss to complainant. That day Pynursla P.S. made general entry No. 124 and the Traffic M.V.I made enquiry on 9-4-92 and submitted report to police.

 

On 9-4-92 the Complainant reported the accident to defendant no. 1 and 2 who appointed Shri. Ashish Das as Surveyor to assess the loss and give report. The Surveyor submitted report to the effect that it was a total loss; but thereafter the Defendant No. 1 and 2 made no payment. So the Complainant filed this case on 19-9-94 for –

 

a. Cost of vehicle                                  -                                   Rs.3,25,266.00

b. Cost od driver cabin with

    load body                                         -                                   Rs.   60,000.00

c. Hire installment over due

    to OP/ No. 3 and 4                          -                                   Rs.   11,350.00

d. Compensation charges for

    hire installment                                  -                                   Rs.   77,576.00

                                                            Total            -              Rs.5,74,192.00

 

Mr. Jindal maintained that in case of total loss the owner is entitled to claim the original price. He placed reliance on a decision of a National Forum in Oriental Insurance Co. Ltd Versus Suresh Arjun, 1992(1) CPR 431.

 

There it was held –

 

“The Insurance Company, while settling the claim based on a Motor Insurance Policy, is liable to pay to the insured in the event of ‘total loss’ of the vehicle the market value of the vehicle on the date of its loss and not its actual amount stated in the policy as the value of the vehicle estimated by the insured”.

 

That was the case of lorry “Premier Road Master 1981 model” which met with an accident on 30.5.89. The accident caused total loss to the owner. The National Commission held that in such a case the surveyor should ascertain as to what was the value in the market of a second hand (used) vehicle of the particular made and model as on the date when the accident took place. So they directed the insurance Company to appoint two independent Surveyors for ascertaining the market value of a second hand (used) Premier Road Master 1981 model in good running condition as on 30.5.89 and submit their separate and independent report to the Insurance Company within six weeks of the date of receipt by them of the intimation of their appointment by the Insurance Company was to forward the report forthwith to the commission.

 

We find that the decision applies to the case in hand; but it does not help the contention of Mr.Jindal that in case of total loss the owner can claim the original price. In view of this decision we also direct the Defendant No. 1 and 2 herein to appoint two independent Surveyors within three weeks from today for separately ascertaining the market value of a second hand (used) Tata truck 1991 model in good running condition as on 8.4.92 and also direct that the Surveyors should give notice to the complainant and consider all materials which may be placed by him and also any representation made by him. The Surveyors should submit their separate and independent reports to the Defendant No. 1 and 2 within six weeks of the date of receipt by them of the intimation of their appointment by the Defendant No. 1 and 2. Defendant no. 1 and 2 will thereafter forthwith forward the report to this Commission for passing necessary order.