ASHOK SURI vs BRANCH MANAGER, THE NEW INDIA ASSURANCE CO. LTD.

DEFICIENCY in insurance service is grievance of the complainant.

IS a partner of the owner of the vehicle bearing regIStration No. OAU-6727 in respect of which there was burglary insurance with the . During the period covered under the policy, the car was stolen. Excepting the death and liability insurer paid a sum of Rs. 84,500/-although the policy covered the rISk for Rs. 1,05,000/-. When complainant wanted to know the reason of deduction, insurer invited him for dIScussion. As there was delay in finalisation of the dispute, complaint was filed on 13th September 1992. Getting notice, insurer offered Rs. 12,500/- subject to the condition that complaint shall be withdrawn in its letter dated 11th March, 1993, copy of the same has been filed. Since complainant had a feeling that there was deficiency in service, he did not withdraw the complaint and, accordingly, the amount has not been paid.

Insurer has taken the plea that there is an arbitration clause, when there is dispute regarding quantum and accordingly complainant should have raised the dispute before the Arbitrator and ought not to have filed the complaint.

WE would have appreciated the contentions of the insurer if is would not have offered Rs. 12,500/- subsequently. WE might have taken a view that dispute regarding quantum is not deficiency in service where there may be some justification for reducing the quantum. However, offer of Rs. 12,500/- subsequently makes it clear that officer of the insurer having not applied their mind to the determination of quantum, any quantum decided or offered without application of mind is deficiency in service. Insurer is the Insurance Company. It creates all the activities of the State. Officers of the Insurer are required to be fair and ideal. They cannot keep the same amount reserved in order to finalise the claim. In such a situation, when an amount of Rs. 12,500/- has been offered subsequently we are satisfied that earlier offer of Rs. 84,500/- has been offered we are inclined to direct that the said amount shall be paid within 2 months from the date of receipt of this order, either from this Commission or a copy being served by complainant. For the balance amount of claim, if the complainant is so advised, he may make a claim for arbitration and such a claim shall be decided in accordance with the provisions of Arbitration Act. We may observe that in view of deficiency in service, the Consumer Protection Act has been enacted. It is unfortunate that persons against whom deficiency in service is attributed requiring withdrawal of complaint for settlement of the legitimate claim in rendering service. Hope, the Insurer will justify their action in future and in case a Consumer can be further helped as in withdrawal this case without insisting upon complaint. When these facts are brought to notice of redressal agency, the conduct of the person rendering .service will have effect on adjudication.

IN the result, complaint is allowed to the extent indicated above. Complaint allowed.