ORDER

PER MS.SUDHA SHARMA, MEMBER

1.       Complainant–Abnash Chander has filed the instant complaint under Section 12 of the Consumer Protection Act, 1986 against the OPs.

2.                Briefly stated the case of the complainant is that he is owner of vehicle bearing registration No.PB-08-CL-9640 make Hyundai I-20 Car model 2013 purchased from Goyal Automotive Limited G.T. Road, Pragpur, Jalandhar.  It is further averred that the vehicle is fully insured with OP vide policy bearing No.1105023114P100175279 for the period from 11.04.2014 to 10.04.2015.  The OP received from complainant sum of Rs.11,170/- for making the full insurance of said vehicle.  It is averred that within policy period the said vehicle met with an accident in the month of June 2014 and the complainant got repaired it from M/s Goyal Automotive Limited, G.T. Road, Paragpur Jalandhar who charged Rs.22,375/- from complainant.  Thereafter, M/s Goyal Automotive limited gave the documents for getting claim of said amount to the Surveyor of the OP who charged extra fee of Rs.1,940/- for making survey report.  It is averred that complainant visited the office of OP to get the claim but nothing has been done.  The OP finally closed the file and repudiated the claim vide letter reference No.BON:JS:JR::2014:839 dated 16.09.2014 on the plea that the surveyor assessed the loss for Rs.19,642/- and OP has given no claim bonus 20% renewal of Bharti Axa General Insurance Company and further intimated the complainant that all the benefits under policy in respect of Sec-I of the policy stand forfeited and demanded Rs.2,721/- as recovery of NCB from complainant.  It is further averred that previous policy of Bharti Axa Insurance was expired when the present policy was in-force, the vehicle met with an accident so Bharti Axa Insurance gave the claim of the loss and the complainant opted to take the policy from OP who with their own accord made less 20% NCB.  Denying the genuine claim of the complainant of Rs.22,375/- tentamounts to unfair trade practice and deficiency in service on the part of the OP and he prayed for the following reliefs:

          a)       Amount of claim                     :         Rs.22,375/-

          b)      Fee paid to Surveyor               :         Rs.  1,940/-

          c)       Cost of litigation                     :         Rs.3,300/-

          d)      Compensation for mental

                   Tension/harassment                :         Rs.60,000/-

                                                Total           :         Rs.87,615/-

3.                On notice, OP has filed written statement taking preliminary objections that complainant suppressed the material facts while taking the insurance policy from the OP for the period 11.04.2014 to 10.04.2015 for his vehicle bearing No.PB-08CL-9640 alleging that he did not claim during the subsistence of the previous insurance policy from Bharti Axa General Insurance Company and as such he cannot take the benefit of his own wrongs forfeiting all benefits under the policy.  It is submitted that claim of complainant was rightly and legally repudiated after the receipt of the surveyor report.  It is also submitted that complainant declared that no claim was claimed during the previous policy but on verification from the previous insurer it was informed that he made himself disentitled to get any claim.  The complainant was given 20% NCB on his given statement that he has not received any claim during the previous insurance and he failed to deposit the NCB amount amounting to Rs.2,721/-.  On merits, it is submitted that claim of the complainant was repudiated as per terms and conditions of the policy in question under Section-1 and the complainant was accordingly informed.  Rest of the averments made in the complaint are empathically denied.  

4.                In support of their version, the parties have tendered documentary evidence.  Attorney of complainant has tendered in evidence affidavit of complainant Ex.CA alongwith photocopies of documents i.e. policy documents Ex.C-1, cash memo dated 30.06.2014 Ex.C-2, receipt dated 04.07.2014 Ex.C-3, letter dated 16.09.2014 Ex.C-4 and closed the evidence.

5.                On the other hand, learned counsel for OP has tendered in evidence affidavit of Sh.Joga Singh, Branch Manager as Ex.OPA, in remaining evidence photocopies of documents i.e. insurance policy of Bharti Axa Ex.OP-1, letter dated 08.08.2014 Ex.OP-2, cover note dated 10.04.2015 Ex.OP-3, terms and conditions Ex.OP-4, insurance policy Ex.OP-5, survey report Ex.OP-6, repudiation letter dated 12.08.2014 Ex.OP-7 and closed the evidence.

6.                We have heard the attorney of the complainant and learned counsel for the OP and have gone through the record carefully.

7.                It is argued by the counsel for the OP that by seeking No Claim Bonus (NCB), the complainant made a declaration that he had not taken any claim on the vehicle which he seeking to insure with the OP.  Having taken a policy from the OP, he knew it very well that the aforesaid declaration made by him was not correct.  The aforesaid declaration was made with the intention so as to obtain a No Claim Bonus from the OP.  Thus, the claim of the complainant was rightly repudiated by the OP.

                   On the other hand representative of the complainant argued that OP repudiated the genuine claim of the complainant as he is eligible to get the claim for the loss under the policy issued by the OP and the OP has no right to forfeit the benefits under the policy.

8.                On the perusal of the repudiation letter Ex.C-4, it transpired that OP repudiated the claim with the plea that OP has given N.C.B. 20% renewal of Bharti Axa as per their N.C.B. letter to the complainant, hence complainant is not eligible for the next slab N.C.B. on renewal and all the benefits under the policy stand forfeited.  Whether OP rightly repudiated the claim of the complainant, we have perused the document: proposal form Ex.OP-3 in which declaration has been signed by the complainant under the head: DECLARATION THE INSURED whereby it is clearly mentioned that N.C.B. claim by him is correct and no claim has arise in the expiring policy.  By seeking a No Claim Bonus, from the OP the complainant made a declaration that he had not taken any claim on the vehicle which is seeking to insure with the OP.  While taking the policy from OP he was well aware that the aforesaid declaration made by him was not correct.  Thus, in our opinion the policy which the complainant obtained by misrepresentation cannot entitle him to get any claim from the OP.  Since, a contract between the insurer and insured was obtained by misrepresentation is voidable, consequently, the OP was justified in repudiating the claim on account of misrepresentation made by the complainant.  However, the demand of OP from the complainant to deposit the recovery of N.C.B. for Rs.2,721/- vide repudiation letter Ex.C-4 is not regular.         

9.                In view of the above, the present complaint is hereby stands disposed of with no orders as to costs.             

10.              Let copies of the order be sent to the parties, as permissible, under the rules.

Dated:  24.02.2015