THE CONSUMER DISPUTES REDRESSAL FORUM, KOTTAYAM
Present:
Sri. Santhosh Kesavanath P., President
Sri. K.N. Radhakrishnan, Member
CC No. 158/2010
Friday , the 24th day of February, 2012
Petitioner : P.T Thomas,
Mukkudiyil House,
Perumbaikadu P.O.
Kottayam.
(By Adv. K.P Somanatha Panicker)
Vs.
Opposite parties : 1) The Manager,
ICICI Lombard GIC Ltd.,
Room No.1, 4th Floor,
Muthoottu Crown Plaza,
T.B Road, Kottayam.
(By Adv. Agi Joseph)
2) Tomy Sunny,
Addakkarathu House,
Pulluvazhy P.O
Moovattupuzha,
Ernakulam District.
O R D E R
Sri. Santhosh Kesavanath P., President.
Case of the petitioner, filed on 24..6..2010, is as follows. Petitioner is a business man. He is the owner of a Motor Car bearing No. KL-5 Q – 9628. First opposite party is an Insurance Company. Petitioner insured his motor car on 30..3..2007 with the opposite party by paying a sum of Rs. 5,537/- as premium for one year. The policy issued was a comprehensive policy and is valid from 2..4..2007 to 1..4..2008. On 1..7..2007 petitioner on his way to Perumbavoor, met with an accident. Accident was intimated to service manager of first opposite party he prepared a mahazar and directed the petitioner to repair the vehicle at ACC Motors, Perumbavoor. ACC Motors issued a bill amounting Rs. 9,750/-. Petitioner forwarded a claim to the first opposite party and requested opposite party to allow the claim
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amount. First opposite party repudiated the claim of petitioner. Hence the petition.
Opposite party filed version contenting that petition is not maintainable. Liability of the company is only as per terms and conditions and exception in policy. There is a condition in the policy to the effect that company shall declaimed liability if claim is not within 12 calendar months from date of disclaimer. Petitioner paid premium in 2 Cheques for an amount of Rs. 5395/- and Rs. 142/- respectively. Second Cheque given by petitioner dis- honoured and there by policy was cancelled. According to the opposite party there is no deficiency in service on their part. Opposite party prays for dismissal of petition with their costs.
Points for determinations are:
i) Whether there is deficiency in service on the part of opposite party?
ii) Relief and cost?
Evidence in this case consists of affidavit filed by both parties and Ext. A1 to A10 documents on the side of the petitioner and Ext. B1 to B4 documents on the side of opposite parties.
Point No. 1
Crux of the case of petitioner is that claim of the petitioner, for the insured amount of Rs. 9,750/- is not so far processed by opposite party. There is no dispute with regard to the occurrence of the accident on 1..7..2007. Admittedly policy is valid from 2..4..2007 to 1..4..2008. According to opposite party petitioner paid premium in 2 Cheques for an amount of Rs. 5395/- and Rs. 142/- respectively. Second Cheque given by the petitioner was dis-honoured and there by policy is cancelled. The learned counsel who appear for petitioner argued that as per policy condition in cases of cancellation of policy proportionate premium is to be refunded.
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The cover note condition produced is marked as Ext. A2. In Ext. A1 cover note it is stated that in certain circumstances company have right to cancel the policy. In such a case company would sent a written notice and cancel the policy by proportionately refunding premium to the insured. Here admittedly no notice with regard to cancellation and proportionate refunding is done by the opposite party. Further more opposite party has not produced any document to prove that Cheque amounting Rs. 142/- was not honoured. So, in our view the argument of learned counsel for opposite party stating that policy is cancelled is not legally sustainable.
Petitioner claims Rs. 9750/- as damages sustained to the petitioner. According to opposite party, as per the survey report, they are only liable to pay an amount of Rs. 6804.75. In our view act of the opposite party in not processing the claim of the petitioner with regard to an accident occurred on 1..7..2007, amounts to deficiency in service. As per regulation 9 of IRDA(Protection of policy holders interest) Regulation 2002. An insured shall give notice to the insurer of any loss at the earliest. On receipt of a communication, insurer shall respond immediately and give clear indication to the insured about the procedures that he should follow. Surveyor has to be appointed within 72 hrs. As per regulation 9 (2) surveyor shall communicate his finding to the insurer within 30 days of his appointment. As per regulation 9 (5) on receipt of the survey report insurer shall offer a settlement or rejection of the claim within 30 days of receipt of report. As per regulation 9 in case of delay in payment the insurer shall be liable to pay interest at a rate of 2 % above bank rate prevalent at the beginning of financial year. In our view act of the opposite party in non- settlement of the claim amounts to deficiency in service. So, point No. 1 is found accordingly.
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Point No. 2.
In view of finding in point No. 1 petition is allowed. In the result opposite party is ordered to pay an amount of Rs. 6,804.75 with 12% interest from 1..7..2007 till realization. Since interest is allowed no separate compensation is ordered. Opposite party is ordered to pay an amount of Rs. 2,000/- as cost of the proceedings to petitioner. Order shall be complied with within one month from the date of the copy of this order.
Dictated by me, transcribed by the Confidential Assistant, corrected by me and
pronounced in the Open Forum on this the 24th day of February, 2012.
Sri. Santhosh Kesavanath P., President Sd/-
Sri. K.N. Radhakrishnan, Member Sd/-
Documents for the petitioner
Ext. A1: Copy of receipt of vehicle tax.
Ext. A2: Copy of certificate cum policy
Ext. A3: Copy of FIR in Crime 434/07
Ext. A4: Copy of driving licence
Ext. A5: Copy of bill Dtd: 16..10..2007 issued by Standard Engineers.
Ext. A6: Copy of bill issued by ACC Motors Dtd: 16..10..2007
Ext. A7: Lawyers notice Dtd: 5..2..2007
Ext. A8: Postal AD card
Ext. A9: Order in Op MV 59/08
Ext. A10: Copy of affidavit filed in OP MV 53/08
Documents for the opposite party:
Ext. B1: Copy of survey report.
Ext. B2: Copy of policy cancellation letter
Ext. A3: Copy of details of UCP
Ext. A4: Copy of letter issued to RTO.
By Order,
Senior Superintendent
