DATE OF FILING : 6.11.2015
IN THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI
Dated this the 28th day of July, 2017
Present :
SRI. S. GOPAKUMAR PRESIDENT
SRI. BENNY. K. MEMBER
CC NO.310/2015
Between
Complainant : Arun P. Tom,
Pothananickal House,
Karimkunnam P.O.,
Thodupuzha, Idukki.
(By Adv: K.M. Sanu)
And
Opposite Parties : 1. The Manager,
New India Assurance Co. Ltd.,
Thodupuzha Branch,
Kanjiramattam Bypass Road,
Thodupuzha P.O.,
Idukki.
2. The Manager,
New India Assurance Co. Ltd.,
Tharayil Chambers, 1st Floor,
NH Bypass, Vyttila,
Kochi – 682 019.
(Both by Adv: Thomas Sebastian)
O R D E R
SRI. S. GOPAKUMAR, PRESIDENT
Case of the complainant is that,
Complainant is the owner of a motor bike having registered No.KL-38D-7717 duly registered with 1st opposite party insurance company and its validity is from 20.8.2014 to 19.8.2015. On 11.7.2015, this vehicle met with an accident and caused severe damages to the vehicle and injuries to the rider and as per the direction of 1st opposite party, the vehicle entrusted to the authorized workshop of KTM bikes, the Popular Motor Corporation KTM 2 wheeler service, Vyttila, Kochi. The surveyor of 1st opposite party made vehicle survey and prepared estimate and report. The complainant paid an amount of
(cont....2)
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Rs.101440/- as vehicle repair charges and took back the vehicle and the workshop authorities entrusted the bill of vehicle repair to the 2nd opposite party directly and the complainant given signed claim form to them. But so far the 1st opposite party not turned up to honour the claim of the complainant.
The complainant further contended that as per the policy condition, if the loss was assessed more than 75% of IDV, it can be treated as total loss and the company shall pay the whole IDV or replace the vehicle to a new one. As per the guidelines authorized workshop repaired the vehicle.
While considering the claim form, it is came to know that 1st opposite party decided to close the claim by awarding a meagre amount and offered an amount below Rs.70,000/-. Since the vehicle is a brand new one and below one year, it is unfair to take such decision and against this, the complainant approached this Forum and filed this complaint for getting relief such as to direct the opposite parties to pay the entire claim amount as per the workshop bills and costs and compensation.
On notice, opposite parties entered appearance and filed detailed version. In their version, 1st opposite party admitted the policy and accident. Opposite party further contended that as per the policy, the insurance company will indemnify the insured against the loss or damage to the vehicle insured subject to the terms and conditions of the policy. The loss or damage to the vehicle can be assessed on repair basis, on total loss basis and as salvage loss basis. On the basis of the estimate submitted by the workshop and inspection conducted by the surveyor, he has assessed total cost of parts inclusive of taxes after deducting depreciation and total labour charges to repair the vehicle. As per section 1 of the conditions of policy, if the age of the vehicle exceeds 6 months, but not exceeding 1 year, the rate of depreciation for spare parts is 5% and irrespective of age of the vehicle, the rate of depreciation for plastic, nylon and rubber parts is 50%. Here the total cost of parts including taxes after deducting depreciation as stated above assessed is Rs.62,395.97/- and total labour charges to repair the vehicle assessed is Rs.6,555/-. After deducting depreciation, compulsory excess and salvage value, the surveyor assessed the minimum liability of the insurer on repair basis to repair the vehicle is Rs.68,100/-. As per the policy, the vehicle will be treated as constructive total loss, if the (cont....3)
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aggregate cost of retrieval or repair of the vehicle exceeds 75% of IDV of the vehicle. Since the loss assessed by the surveyor is Rs.68,100.97, which is less than 75% of the IDV, he recommended the 2nd opposite party to settle the claim on repair basis. Therefore the opposite party had paid the amount to the complainant as per payment voucher dated 3.11.2015 and the complainant has accepted the same with full and final settlement of his claim. Hence there is no deficiency in service from the part of opposite parties in this matter and the complaint is liable to be dismissed.
Complainant examined as PW1 and Exts.P1 to P3 were marked. Ext.P1 is the copy of RC Book, Ext.P2 is the copy of policy, Ext.P3 is the copy of retail invoice. From the defence side surveyor was examined as DW1 and Exts.R1 to R6 were marked. Ext.R1 is the survey report. Ext.R2 is re-inspection report. Ext.R3 is estimate of repairs. Ext.R4 is retail invoice original. Ext.R5 is payment voucher. Ext.R6 is payment voucher.
Heard both sides.
The point for consideration is whether there is any deficiency in service from the part of opposite parties and if so, for what relief the complainant is entitled to ?
The POINT :- We have carefully gone through the records of the case. It was submitted by the learned counsel for the complainant that he happened to pay an amount of more than one lakh rupees, it is mandatory to assess the loss of the vehicle on total loss and pay the IDV or replace the vehicle to a new one. On the other hand, the counsel for the opposite party vehemently argued that the bill that produced by the complainant alongwith the claim form is an exaggerated one and it contains replacing of consumables and depreciation is not deducted. By perusing the Ext.P3 copy of bills, we can see that complainant paid an amount of Rs.101440/- to the authorized workshop for repairing charges. In this bills it is seen that Rs.88,697/- is charged for spare parts and Rs.12000/- for labour charges. As per the terms and conditions of the insurance policy, it is mandatory to deduct the depreciation to the metal parts and rubber/plastic/nylon parts. Since the vehicle is having 8 months old, the depreciation is applicable as 5% in metal parts and 50% in plastic/nylon/rubber parts. In this case, the opposite party calculated Rs.19,528/- as depreciation, (cont....4)
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Rs.100/- policy excess and Rs.750/- salvage and Rs.6555/- labour cost. Here it is pertinent to note that the authorised workshop started the repair works of the vehicle only after assessing the damages by the Authorised Loss Assessor and after getting sanction from the surveyor. Hence the complainant is not liable to bear the difference in the labour cost. At the same time, he had to suffer the depreciation as mandated in the insurance policy condition.
Therefore the Forum is of a considered view that, the complainant is entitled to receive the claim amount after deducting the depreciation, policy excess and salvage. Here depreciation is assessed as Rs.19,528/-, policy excess is Rs.100/- and salvage is Rs.750/-. As per the complaint, complainant paid an amount of Rs.101440/- as repairing charges and received an amount of Rs.68100/- as claim amount.
Hence the Forum finds that the 1st opposite party company is bound to pay the balance amount, that is [101440 – (68100+19528+100+750)], that is, 101440 – 88478 = 12962.
Under the above said circumstance, the Forum directs the 1st opposite party to pay an amount of Rs.12962/- as balance claim amount to the complainant along with Rs.2000/- as litigation cost, within 30 days of receipt of a copy of this order, failing with the amount shall carry 12% interest per annum from the date of default, till its realisation.
Pronounced in the Open Forum on this the 28th day of July, 2017
Sd/-
SRI. S. GOPAKUMAR, PRESIDENT
Sd/-
SRI. BENNY. K., MEMBER
(cont....5)
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APPENDIX
Depositions :
On the side of the Complainant :
PW1 - Arun P. Tom.
On the side of the Opposite Party :
DW1 - M.B. Santhosh.
Exhibits :
On the side of the Complainant :
Ext.P1 - copy of RC Book,
Ext.P2 - copy of policy,
Ext.P3 - copy of retail invoice.
On the side of the Opposite Party :
Ext.R1 - survey report.
Ext.R2 - re-inspection report.
Ext.R3 - estimate of repairs.
Ext.R4 - retail invoice original.
Ext.R5 - payment voucher.
Ext.R6 - payment voucher.
Forwarded by Order,
SENIOR SUPERINTENDENT
