Karnataka

Chitradurga

CC/78/2016

Smt. J. Kariyamma - Complainant(s)

Versus

The Manager, Reliance General Insurance Co., Ltd - Opp.Party(s)

Vidyadhar. S

07 Jan 2017

ORDER

 

 

COMPLAINT FILED ON:17.08.2016

DISPOSED      ON:07.01.2017

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHITRADURGA.

 

CC.NO: 78/2016

 

DATED:  7^th JANUARY 2017

PRESENT: - SRI. T.N. SREENIVASAIAH  : PRESIDENT                                   B.A., LL.B.,

                   SRI.N. THIPPESWAMY        MEMBER

                                 B.A., LL.B.,   

……COMPLAINANTS	1. Smt. J. Kariyamma, W/o Late Srinivasa.C.K, Age 42 Years, Occ: Tailor.   2. Kum. K.S. Nisha, D/o Late Srinivasa.C.K, Age 18 Years, Student.   3. Kum. K.S. Anusha, D/o Late Srinivasa.C.K, Age: 15 Years, Student, (Since Minor, she is represented by her mother Complainant No.1 as a guardian) All are r/o Siddapura Village, Chitradurga Taluk and District.   (Rep by Sri.Vidyadhar.S, Advocate)
V/S
…..OPPOSITE PARTIES	1. The Branch Manager, Reliance General Insurance Co. Ltd., No.1 & 2, I Floor, Magnur Commercial Complex, B.D. Road, Chitradurga. 2. The Manager, The Corporation Bank Ltd., Chitradurga Branch, B.D. Road, Chitradurga. (Rep by Sri. B.M. Ravichandra, Advocate for OP No.1, OP No.2 ex-parte)

ORDER

SRI. T.N. SREENIVASAIAH:   PRESIDENT

The above complaint has been filed by the complainants u/Sec.12 of the C.P Act, 1986 for the relief to direct the OPs to pay Rs.5,62,853-79 with interest at 12% p.a and such other reliefs.

2.      The brief facts of the case of the above complainant are that, one Srinivasa C.K who is husband of complainant No.1 and father of complainants No.2 and 3 is the registered owner of Maruthi Suzuki Swift Dzire Car bearing Reg. No.KA-16 C-2090 and the same has been insured with OP No.1 under Policy No.1406552338000084 on 27.01.2015 for a period from 27.01.2015 to mid-night of 26.01.2016.  The declared value of the said car was Rs.6,17,000/-.  The said Srinivasa C.K. had purchased the same with the financial assistance of OP No.2.  It is further submitted that, said Srinivasa C.K. died on 20.03.2015 leaving behind him as his legal heirs, entitled for the benefit of policy obtained by him.  It is respectfully submits that, on 04.10.2015 at about 3-30 PM near Makanahalli village the said vehicle met with an accident due to rash and negligent driving of the driver by name Raja Gopalachari and the same has been fully damaged.   Ajjampura Police have registered a case in Crime No.184/2015 for the offences punishable u/Sec.279 and 337 of IPC.  Soon after the incident, complainant No.1 intimated about the same to OP No.1 and the surveyor of OP No.1 has visited the spot and obtained photos and the surveyor has suggested to the complainant No.1 to leave the vehicle for repairs before the Shruthi Motors, P.B. Road, Davanagere.  After that, the complainant No.1 shifted the damaged vehicle to Shruthi Motors by towing in a hired lorry for repairs by incurring a sum of Rs.10,000/-.  Later the OP No.1 deputed a surveyor to assess the damages and thereafter, the surveyor has inspected the vehicle at Shruthi Motors and suggested to the complainant to get repair the damaged vehicle.  Then the Maruthi Suzuki Motors have estimated to an extent of Rs.2,92,853-79.  The complainant has submitted the documents along with copy of estimation to the OP No.1 for claim.  After that, the complainant requested the OP No.1 to settle the claim as soon as possible because there is no funds in the hands of the complainant.  On 25.11.2015, OP No.1 has sent a repudiation letter to complainant No.1 stating that, on perusal of the documents and investigation of the matter, it is observed that the insured Mr. Srinivasa C.K was expired on 20.03.2015.  However, the registration certificate as well as policy is not transferred in the name of legal representative of the said Srinivasa C.K.  Hence, the claim of the complainant No.1 stands repudiated and no liability attaches to the company.  Due to the act of the OP No.1, complainant No.1 suffered much loss which cannot be compensated in any manner.  The complainant further stated that, the OP No.2 threated her because she has not cleared the debt within time and OP No.2 stated that, they will initiate Civil and Criminal cases against her.  The complainant stated in her complainant that, she spent nearly Rs.5,62,853-79 in all towards expenses.  The cause of action to file this complaint arose on 25.11.2015 when the OP No.1 has repudiated the claim by the complainant No.1.  The jurisdiction for the complaint arisen at Siddapura village in Chitradura Taluk within the jurisdiction of this Forum.  The complainant respectfully prayed before this Forum to direct the OP No.1 to pay a sum of Rs.5,62,853-79 along with 12% interest within 30 days from the date of received the orders from this Forum. 

 

3.      On service of notice, OP No.1 appeared through                    Sri. B.M. Ravichandra, Advocate and filed version.  In spite of service of notice, OP No.2 remained absent, hence placed ex-parte.   

 

OP No.1 filed version denying the entire averments made in the complaint.  It is stated that, the complainant has not approached this Forum with clean hands.  It is further stated that, OP No.1 has issued passenger carrying commercial vehicle package policy to the Maruthi Suzuki Swift Car bearing Reg. No.KA-16 C-2090 valid for the period from 27.01.2015 to 26.01.2016 in favour of one Srinivasa C.K covering own damage for IDV value for an amount of Rs.6,17,000/- and also covering third party injury, third party property damage as per the Act.  It is further submitted that, the said vehicle met with an accident on 04.10.2015 and the same was intimated to the OP No.1 through claim form on 21.10.2015.  OP No.1 asked the complainant to give estimation along with claim form and certified copy of police papers with documents.  The Surveyor/Loss Assessor of the OP insurance company by name Hemachandra B, surveyed the vehicle and given a final report assessing the loss towards repair and insurers liability for Rs.27,994/- after deducting compulsory policy excess Rs.500/- subject to policy terms and conditions.  The complainant has produced documents like Claim Form, FIR, Policy, DL, Permit, FC, Adhar Card and Bank Pass Book of Complainant No.1  and Death Certificate of Srinivasa C.K.  It is further stated that, the owner of the said vehicle died on 20.03.2015 and the policy and RC were not transferred in the name of legal heirs of deceased Srinivasa C.K, so, OP No.1 has repudiated the claim of the complainant on 25.11.2015 stating that, in the event of death of sole insure, policy will not immediately lapse, but will remain valid for a period of 3 months from the death of the insured or until the expiry of the policy, whichever is earlier.  During the said period, legal heirs of the insured whom the custody and use of the motor vehicle pass may apply to have this policy transferred to the names of the heirs or obtain a new insurance policy for the motor vehicle.  Such legal heir’s desires to apply for transfer of the policy or obtain a new policy for the vehicle such heirs should make an application to the company within the aforesaid period accompanied by required documents.  Complainant has violated the policy condition No.10(10) of the policy.  There is no deficiency of service on the part of OP No.1 and prayed for dismissal of the complaint.                

4.      Complainant has examined as PW-1 by filing affidavit evidence and the documents Ex.A-1 to A-7 were got marked. On behalf of OP No.1, one Sri.  , Divisional Manager has examined as DW-1 by filing the affidavit evidence and Ex.B-1 to B-4 documents have been got marked.   

5.      Arguments of both sides heard.

6.      Now the points that arise for our consideration for decision of above complaints are that;

(1)  Whether the complainants prove that the OPs have committed deficiency of service in settling the claim made by them and entitled for the reliefs as prayed for in the above complaint?

              (2) What order?

          7.      Our findings on the above points are as follows:-

          Point No.1:- Partly in Affirmative.

          Point No.2:- As per final order.

REASONS

8.      It is not in dispute that, husband of complainant No.1 and father of complainants No.2 and 3 is the registered owner of Maruthi Suzuki Swift Dzire Car bearing Reg. No.KA-16 C-2090 and the same has been insured with OP No.1 under Policy No.1406552338000084 on 27.01.2015 for a period from 27.01.2015 to mid-night of 26.01.2016 and the declared value was Rs.6,17,000/-.  The same has been purchased by the husband of the complainant No.1 with the financial assistance of OP No.2.  The said Srinivasa C.K died on 20.03.2015 leaving behind as legal heirs of the complainants are entitled for the benefit of policy obtained by him.   On 04.10.2015 at about 3-30 PM near Makanahalli village the said vehicle met with an accident due to rash and negligent driving of the driver by name Raja Gopalachari and the same has been fully damaged.   The Ajjampura Police have registered a case in Crime No.184/2015 for the offences punishable u/Sec.279 and 337 of IPC and the complainant No.1 intimated about the same to OP No.1.   The OP No.1 deputed a surveyor for visit the spot.  The surveyor visited the spot and obtained photos, and the surveyor has suggested to the complainant No.1 to leave the vehicle for repairs before the Shruthi Motors, P.B. Road, Davanagere.  After that, the complainant No.1 shifted the damaged vehicle to Shruthi Motors by towing in a hired lorry for repairs by incurring a sum of  Rs.10,000/-.  Then the Maruthi Suzuki Motors have estimated to an extent of Rs.2,92,853-79.  The complainant No.1 has submitted the documents along with copy of estimation to the OP No.1 for claim.  After that, the complainant requested the OP No.1 to settle the claim as soon as possible because there is no funds in the hands of the complainant No.1.  On 25.11.2015, OP No.1 has sent a repudiation letter to complainant No.1 stating that, on perusal of the documents and investigation of the matter, it is observed that the insured Mr. Srinivasa C.K was expired on 20.03.2015.  However, the registration certificate as well as policy is not transferred in the name of legal representative of the said Srinivasa C.K.  Hence, the claim of the complainant No.1 stands repudiated and no liability attaches to the company.  Complainant No.1 suffered much loss which cannot be compensated in any manner.  The complainant further stated that, the OP No.2 threatened her because she has not cleared the debt within time and OP No.2 stated that, they will initiate Civil and Criminal cases against her.  The complainant stated in her complaint that, she spent nearly Rs.5,62,853-79 in all towards expenses.  

 9.     In support of his contention, the complainants have filed his affidavit evidence and reiterated the contents of complaint and relied on the documents like FIR marked as Ex.A-1, complaint given by Pradeep.R S/o Ramanna marked as Ex.A-2, Police Mahazar marked as Ex.A-3, Motor Vehicle Accident Inspection Report marked as Ex.A-4, Copy of Charge Sheet marked as Ex.A-5, Insurance Policy marked as Ex.A-7 and Service Estimate dated 26.10.2015 issued by Shruthi Motors, Davanagere marked as  Ex.A-8.  

10.    On the other hand, it is argued by the OP No.1 that, the complainant has not approached this Forum with clean hands.  OP No.1 has issued passenger carrying commercial vehicle package policy to the Maruthi Suzuki Swift Car bearing Reg. No.KA-16 C-2090 valid for the period from 27.01.2015 to 26.01.2016 in favour of one Srinivasa C.K covering own damage for IDV for an amount of Rs.6,17,000/- and also covering third party injury and third party property damage as per the Act.  The said vehicle met with an accident on 04.10.2015 and the same was intimated to the OP No.1 through claim form on 21.10.2015.  OP No.1 asked the complainant to give estimation along with claim form and certified copy of police papers with documents.  The Surveyor/Loss Assessor of the OP/ insurance company by name Hemachandra B, surveyed the vehicle and given a final report assessing the loss towards repair and insurers liability for Rs.27,994/- after deducting compulsory policy excess Rs.500/- subject to policy terms and conditions.  The complainant has produced the required documents to the OP No.1.  The owner of the said vehicle died on 20.03.2015 and the policy and RC were not transferred in the name of legal heirs of deceased Srinivasa C.K, so, OP No.1 has repudiated the claim of the complainant on 25.11.2015 stating that, in the event of death of sole insure, policy will not immediately lapse, but will remain valid for a period of 3 months from the death of the insured or until the expiry of the policy, whichever is earlier.  During the said period, legal heirs of the insured whom the custody and use of the motor vehicle pass may apply to have this policy transferred to the names of the heirs or obtain a new insurance policy for the motor vehicle.  Such legal heir’s desires to apply for transfer of the policy or obtain a new policy for the vehicle such heirs should make an application to the company within the aforesaid period accompanied by required documents.  Complainant has violated the policy condition No.10(10) of the policy.  There is no deficiency of service on the part of OP No.1.

11.    In support of its contention, the OP No.1 has filed affidavit evidence of H.B. Guruprasad, S/o Basavarajaiah, the Manager Legal, Reliance General Insurance Company and reiterated the contents of version and relied on the documents like copy of the policy marked as Ex.B-1, Motor Claim Form marked as Ex.B-2, letter dated 25.11.2015 by the OP No.1 to the complainant No.1 marked as Ex.B-3 and Postal receipt marked as Ex.B-4. 

12.   On hearing the rival contentions of both parties and on perusal of the documents including the affidavit and documentary evidence, it clearly made out that, the husband of complainant No.1 has took insurance policy to his car bearing Reg. No.KA-16 C-2090 for a period from 27.01.2015 to 26.01.2016 for an ID value of Rs.6,17,000/-.  The said car met with an accident on 04.10.2015 at about 3-30 PM near Makanahalli village and the same has been fully damaged.  The same has been intimated by the complainant No.1 to the OP No.1.  OP No.1 has deputed a surveyor to inspect the spot and submit the report.  One Hemachandra. B has inspected the spot and advised the complainant No.1 to leave the vehicle for repair before Shruthi Motors, Davanagere.  As per the advice of the surveyor, the complainant No.1 leave the vehicle for repair and the Shruthi Motors have estimated a sum of Rs.2,92,853-79.  After that, the complainant No.1 as per the request of OP No.1 she has furnished all the relevant documents to OP No.1 for settlement.  Complainant No.1 has claimed a sum of Rs.5,62,853-79 including parking charge, towing charges, interest, loss and mental agony.  The OP No.1 after receiving all the necessary documents from complainant No.1 repudiated the claim of complainant No.1 stating that, husband of the complainant No.1 died on 20.03.2015 but, till today they have not transferred the vehicle documents or policy in their name and further stated that, as per the condition No.9 and 10(10) of the policy, the legal heirs of the insured has to change the concerned documents within three months from the date of death.  If the legal heirs have not changed the documents within time norms specified under the policy, the complainants have no right to claim the compensation under the policy.  But, here is we have gone through the entire policy as well as condition No.9 and 10(10) of the policy, specifically never stated in the policy that, if the policy was not transferred within three months, policy will be automatically cancelled.  But, the condition mentioned in the policy, the party has to change the policy within three months.  The complainant No.1 is an illiterate and village rustic lady and she has no knowledge with regard to the conditions of the policy and moreover, the policy never lapsed, the party has not transferred the policy within the time norms.  On this ground also, the complainant is entitled for compensation.  But, the OP No.1 never stated in its version that, if the condition No.9 and 10(10) of the policy is violated, what is the position of the policy.  Hence, in our considered view, the OP No.1 has committed a deficiency in service and unfair trade practice in settling the claim made by the complainant No.1.  OP No.2 is a financier and only a formal party to this proceeding and there is no claim against OP No.2.  Further the OP No.1 has been admitted that, the policy was in force as on the date of accident. Accordingly, this Point No.1 is held as partly affirmative to the complainant.           

            13.     Point No.2:- As discussed on the above point and for the reasons stated therein we pass the following:-

ORDER

The complaint filed by the complainant U/s 12 of CP Act 1986 is partly allowed.

It is ordered that, the OP No.1 is hereby directed to pay a sum of Rs.4,00,000/- along with interest at the rate of 6% p.a from the date of filing of the complaint till realization. 

It is further ordered that, the OP No.1 is hereby directed to pay Rs.10,000/- towards compensation towards mental agony to the complainant.  

It is further ordered that, the OP No.1 is hereby directed to pay Rs.5,000/- towards costs of this proceeding.  

Complaint filed against OP No.2 is hereby dismissed.

It is further ordered that, the OP No.1 is hereby directed to comply the above order within 45 days from the date of this order.

 (This order is made with the consent of Member after the correction of the draft on 07/01/2017 and it is pronounced in the open Court after our signatures)         

 

                                     

 MEMBER                                                   PRESIDENT

-:ANNEXURES:-

Witnesses examined on behalf of Complainant:

PW-1:  Complainant by way of affidavit evidence.

Witnesses examined on behalf of OPs:

DW-1:  Sri. Guruprasad. B. Manager (Legal) of OP No.1 by way of affidavit evidence. 

Documents marked on behalf of Complainants:

01	Ex-A-1:-	Copy of FIR
02	Ex-A-2:-	Complaint given by Pradeep R S/o Ramanna
03	Ex-A-3:-	Police Mahazar
04	Ex-A-4:-	Motor Vehicle Accident Inspection Report
05	Ex-A-5:-	Copy of Charge Sheet
06	Ex-A-6:-	Insurance Policy
07	Ex-A-7:-	Service Estimate dated 26.10.2015 of Shruthi Motors, Davanagere

Documents marked on behalf of OPs:

01	Ex-B-1:-	Copy of the policy
02	Ex-B-2:-	Motor Claim Form
03	Ex-B-3:-	Letter dated 25.11.2015 by the OP No.1 to the complainant
04	Ex-B-4:-	Postal receipt

 

 

MEMBER                                                            PRESIDENT

Rhr**