DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION CAMP COURT AT LUDHIANA

Received by way of transfer Consumer Complaint No.327 of 2018

                                            Date of institution:14.05.2018

                                            Date of Decision:03.10.2022

Haribhagwan son of Sh. Vijay Kumar Sharma, resident of 35-36, Grain Market, Old, Sahnewal District Ludhiana

…….Complainant

Versus

1. United India Insurance Company Limited, SCF-2, (above Bank of India,) Shaheed Udham Singh Nagar, Ludhiana
2. United India Insurance Company Limited, the HUB 3^rd, Floor Surya Towers, The Mall, Ludhiana-141001  

                                                          ……..Opposite Parties

 QUORUM:   

   HON’BLE MR. RANJIT SINGH, PRESIDENT.

                  HON’BLE MRS. RANVIR KAUR, MEMBER

PRESENT:

Sh. Sukhdev Chand, Adv. for complainant

Sh. Harjeet Singh, Adv. for OPs

ORDER

RANVIR KAUR, MEMBER

1. The present order of ours will dispose of the above complaint filed under Consumer Protection Act, by the complainant against the Opposite Parties on the ground that the complainant is a permanent resident of 35-36 grain market, Sahnewal, District Ludhiana. The OPS are engaged in the business of providing insurance. The OP No.2 is the corporate office of OP No.1. The complainant has availed an insurance policy from OP1 for his two wheeler Hero Honda Splendor bearing RC No.PB-10-CY-1503 and the requisite premium has been paid by the complainant from time to time since the issuance of said insurance policy. The said policy was valid till midnight of 24^th of September 2017. Unfortunately, said motor bike of the complainant was stolen on 13.9.2017 from residents of the complainant. The bike was duly locked but inspite of that the same was stolen. The complainant immediately inform to the concerned policy station with regard to the theft of the motorbike and on the information of the complainant the police officials had conducted their investigation and will show to the complainant that staunch efforts would be put by the police team in order to retrieve the vehicle of the complainant. The complainant has believed the assurance but it was only after strong persuasion by the complainant the police had lodged the FIR regarding the theft on 20.09.2017. Regarding the theft of the bike and email was sent to the OPs on 16.9.2017. Thereafter the complainant has received a letter dated 18.09.2017 from India Detective Investigators vide which certain documents were demanded from the complainant and the said documents were duly supplied as per the instructions penned down in the said letter. Inspite of complying with all the requisite formalities right from duly payment of premium to the timely intimation of the theft as well as supplying of the requisite documents the complainant as astonished to receive a letter dated 21.2.2018 from the OPs vide which the genuine and legitimate insurance claim was rejected by the Ops without assigning any cogent and concrete reasons. Thus, alleging deficiency in service on the part of the OPs. Therefore, the complainant prayed for the following reliefs against the OPs:- 

1. To accept the clam of Rs.60,000/-

2. To pay Rs.20,000/- as compensation

4. Any other additional or alternative relief to which the complainant is found entitled to in the facts and circumstances of the case to the complainant.

2. Upon notice, the OPs have filed written reply taking preliminary objections; that this Commission has no jurisdiction to entertain the present complaint; that there is no deficiency in service on the part of the OPs; that the complaint is barred under section 26 of the Consumer Protection Act; that the complainant is stopped by his own act and conduct from filing the present complaint since the complainant is not coming to the Commission with the clean hands and had concealed the material facts from this Hon’ble Commission; that the complaint is not maintainable. On merits, it is stated that the complainant lodged the claim with the OPs regarding theft of motor cycle No.PB-10-CY-1503 and immediately on receipt of the claim it was duly registered, entertained and processed. M/s Indian Detective and Investigators through its representatives, investigated the matter, recorded the statements, collected documents and after investigation submitted their investigation report dated 29.10.2017 along with documents. After receiving the investigation report along with documents, the officials of the OPs scrutinized the file and after due application of mind by the officials of the OPs in terms of the insurance policy, the competent authority of OPs found that claim is not payable and claim of the complainant was repudiated by the Ops vide letter dated 21.2.2018.   Thus, alleging no deficiency in service on the part of answering OPs and prayed for dismissal the complaint. 
3. In support of the complaint, the complainant has tendered various documents. On the other hand, the OPs has also tendered documents in support of their evidence.
4. We have heard the learned counsel for the complainant and have gone through the record of the file, carefully.
5. From the pleadings and evidence led by the parties, the parties are at issue only regarding the effect of delay in registration of FIR. The OPs are clearly guilty of deficiency in service towards the complainant. The insurance company cannot reject the legitimate claim of the complainant on technical and flimsy ground. The law reported in a precedent 2017 (2) CLT 183, in the circular reference IRDA/HLTH/MISC/CIR/216/0912011 issued by the Insurance Regulatory Development Authority (IRDA). It has been mentioned that genuine claims should not be rejected on account of delay in intimation, and that, the insurer’s decision to reject a claim must be based “sound logic” and “valid grounds” insurer should not rely upon technical pleas for the purpose of defeating legitimate claims of claimants. Insurance Company is liable to indemnify the loss suffered by the complainant 
6. Hence, the case of the complainant succeeded and the insurance company is liable to pay the value of the insured vehicle as per policy of the vehicle i.e. Rs.17100/- along with interest @ 7% from the date of filing of the present complaint. The complainant is also entitled to pay a lum sum amount of Rs.10, 000/- as compensation and litigation expenses. Free certified copies of this order be sent to the parties, as per rules. The file be sent back to the District Consumer Commission, Ludhiana, for consigning the same to the Record Room.
7.  

October 03, 2022

(Ranjit Singh)

(Ranvir Kaur)