BEFORE THE DISTRICT CONSUMER DISPUTES

REDRESSAL FORUM, JALANDHAR.

Complaint No.323 of 2015

Date of Instt. 30.07.2015

Date of Decision: 10.05.2017

Sh. Jagdeep Singh S/o Sh. Balwant Singh, 627, Bashir Pura, Chugiti, Jalandhar.

..........Complainant Versus

1. The Oriental Insurance Company Ltd., Branch Office-1, 32 G.T. Road, Amardeep Building, Opp. Narinder Cinema, Jalandhar-144001. Through Authorized Signatory.

2. M/s Dada Motors, BMC Chowk, Jalandhar.

….… Opposite parties

Complaint Under the Consumer Protection Act.

Before: Sh. Karnail Singh, (President),

Sh.Parminder Sharma (Member)

Present: Sh.Shekhar Prabhakar, Adv Counsel for complainant.

Sh. Brijesh Bakshi, Adv. Counsel for OP No.1.

Sh. Inder Mohan Pal Singh, Law Officer on behalf of OP No.2.

Order

Karnail Singh (President)

1. This complaint filed by complainant, wherein alleged that the complainant had purchased a Bajaj Discover Motorcycle 125 CC bearing temporary registration No.PB-08(T)-6849 Engine No.JZUBUK87522 Chasis No.MD2DSJZZZUPK66970, in the year 2012 from Dada Motors, BMC Chowk, Jalandhar i.e. OP No.2. The OP No.2 deducted the insurance amount on behalf of OP No.1 who issued the insurance policy of the above said vehicle under policy No.233105/31/2013/512 under insurance cover note No.643401 by deducting the premium to this effect from the complainant at the time of selling the vehicle.

2. On 19.03.2013 at 08:00 pm the complainant had parked his bike outside Manni Dhaba, Chugiti Chowk, Jalandhar where from it was stolen. Thereafter the complainant informed the police station Rama Mandi who investigated the matter and registered FIR bearing No.292 dated 20.10.2013 and tried to trace the bike but the same could not be traced by police and police issued non-traceable certificate to this effect on 15.03.2015. In order to fulfill the loss sustained by the complainant, he applied for the claim of loss before OP No.1 on 25.04.2013 as the bike was covered under the insurance scheme under above said cover note. The OP No.1 repudiated the claim of the complainant vide their letter dated 07.03.2014. The required documents were supplied. After being fed up with the attitude of the opposite party No.1, the complainant served a legal notice upon the OP through his counsel on 19.05.2015 through regd. post but the OP never replied the same and as such necessity arose to file the present complaint with the prayer that the OPs may kindly be ordered to pay Rs.50,000/- as claimed amount and Rs.5000/- for subjecting the complainant to harassment and mental agony and Rs.5000/- as litigation expenses.

3. Notice of the complaint was given to the opposite parties and accordingly opposite parties appeared and OP No.1 filed his separate reply whereby contested the complaint by taking preliminary objections that the complaint is not maintainable under the law against OP No.1 and even the complaint is time barred and further alleged that the complainant has been careless and callous in his attitude. The complainant has not informed the OP within 48 hours of the alleged theft and even he did not inform the police immediately after the alleged theft. The FIR has been got lodged by him after 7 months from the date of the alleged theft of the vehicle. The complainant did not inform the insurance company up to 25.04.2013 i.e. even as per his admission he gave intimation to the company after about 37 days from the date of the alleged theft and that too without the requisites. Whereas “Claim for theft of vehicle not payable if theft not reported to company within 48 hours of its occurrence.” and thus on account of material breach of the policy conditions the claim is not maintainable and liable to be repudiated. However, before the repudiation on merits as above, the complainant was requested to provide all the requisite documents i.e. keys etc. of the vehicle but he failed to provide the same and thus the claim was closed being not maintainable and not payable on the short score of non supply of requisite documents vide repudiation letter dated 07.03.2014. It is further averred that the complainant has got no cause of action to file the present complaint against the OP. There has been no default or undue delay, on the part of the answering OP. On merits, it is admitted that the complainant purchased a bike as well as got insurance from the OP No.1 and it was not denied that the above said bike was stolen and accordingly the claim petition was filed by complainant but the same was repudiated for non supplying of requisite documents the other allegations are made in the complaint are categorically denied and lastly submitted that the complaint of the complainant is without merit and the same may be dismissed. OP No.2 filed written reply who categorically admitted that the complainant had purchased the said bike in the year 2012 from OP No.2 and also got insurance policy but in regard to remaining allegations, he submitted that the said allegations are not maintainable against the OP and lastly prayed that the complaint of the complainant is without merit and same may be dismissed qua OP No.2.

4. In order to prove the case of the complainant, counsel for the complainant tendered into evidence affidavit Ex.CW1/A alongwith some documents Ex. C-1 to Ex.C-7 and closed the evidence.

5. Similarly, counsel for opposite party No.1 tendered into evidence affidavit Ex.OP/A and also produced on the file copy of repudiation letter Ex.OP-A/1 and closed the evidence of OP No.1 and counsel for the OP No.2 tendered into evidence affidavit Ex.OP/B alongwith documents Ex.OP/B/1 and Ex.OP/B/2 and closed the evidence.

6. We have heard the learned counsel for the respective party and also gone through the case file very minutely.

7. In short cut, the claim of the complainant is only that he purchased a Bajaj Discover Motorcycle 125CC from OP No.2 vide invoice Ex.C2 and sale certificate Ex.C-1 and at the time of purchase, the OP No.2 also issued a insurance policy and get charges which is included in the price of the motorcycle and specifically mentioned in the invoice and insurance policy was issued by OP No.1 and during the insurance period i.e. 19.03.2013, the said bike was stolen and accordingly the insurance claim petition filed by the complainant but the same was repudiated by the OP No.1 vide letter dated 07.03.2014, the copy of repudiation letter is Ex.C5. The claim of the complainant is repudiated on a flimsy ground i.e. the vehicle is not registered with the Registering Authority, as per settled law the RC is not required for getting claim and in support of this submission the counsel for the complainant made a reliance upon judgment of Hon'ble National Commission cited in 2012(2) C.P.J. 512 IFFCO Tokio General Ins. Co. Ltd. Vs. Pratima Jha, wherein his Lordship held as under:-

“ At the time of theft the vehicle was insured with revision petitioner, claim under the policy was repudiated by the Insurance Company, on the ground that on the day of theft the vehicle was not registered with the transport authorities, District Forum as well as the State Commission have both given a finding that there is nothing in the insurance policy which could exonerate the Insurance Company from its liability on the ground of non-registration of the vehicle, so the orders of the Learned Forums below directing the petitioner to pay insurance amount alongwith compensation, not suffer from any illegality”

8. To the contrary the plea taken by the OP No.1 is only that despite asking the complainant to submit some document, he miserably failed to submit the document and ultimately the case of the complainant was closed being not maintainable as per repudiation letter dated 07.03.2014 Ex.C-5.

9. We have considered over all circumstances and find that the insurance claim of the complainant was repudiated by the OP vide letter dated 07.03.2014 Ex.C-5, on the ground that the following documents were not produced by the complainant i.e. Original R/C alongwith photocopy, Final Investigation Report from Court and NCRB Report. We think that the complainant has produced the original invoice as well as sale certificate, where from one thing is clear that the bike in question was purchased by the complainant and moreover the insurance policy was issued to the complainant on the basis of said sale certificate and retail invoice because at that time registration certificate was not with the complainant because the bike is yet to be got registered with the Registering Authority. So, non supplying of R/C is no ground to discard the claim of the complainant. In support of this observation we think the ruling referred by counsel for the complainant (Supra) in 2012(2) CPJ 512 of the National Commission is very much applicable in the present case.

10. So for the question of other document are related. We find that the insurance company used to appoint investigator and it is the duty of the investigator to collect all the relevant documents from the insured person or from the concerned department and it is the duty of the investigator to get final investigation report from the Court and NCRB Report but repudiating the insurance claim of the complainant simply on the ground for not supplying three documents is totally illegal and not genuine and it is against the law and therefore we find much force in the argument of learned counsel for the complainant.

11. An up-shoot of our above detailed discussion, it is clear that the case of the complainant is proved and therefore complaint of the complainant is partly accepted and OP No.1 is directed to pay insurance amount of Rs.50,000/- to the complainant and also pay compensation of Rs.5000/- and litigation expenses of Rs.3000/-. The entire payment be made within one month from the date of receipt of the copy of order, failing which the complainant will be entitled to get interest on the whole amount of Rs.58,000/- @ 9% per annum from the date of repudiation of the claim i.e. 07.03.2014 till realization. Complaint could not be decided within stipulated time frame due to rush of work.

12. Copies of the order be supplied to the parties free of cost, as per Rules. File be indexed and consigned to the record room.

Dated Parminder Sharma Karnail Singh

10.05.2017 Member President