Duvvi Govinda Rao vs United India Insurance Co Ltd

CHALLENGE in these proceedings is to the order dated 24.11.2010 passed by the Andhra Pradesh State Consumer Disputes Redressal Commisison, Hyderabad (in short, ''the State Commission'') in first appeal No. 608 of 2009, which was filed by the Insurance Company against the order dated 19.12.2008 passed by the District Consumer Forum, Vishakhapatnam in complaint case No. 334 of 2003. By the said order, the District Consumer Forum had allowed the complaint and almost granted the entire relief as claimed in the complaint by directing the Insurance Company to pay a compensation of Rs. 4,32,700 to the complainant along with interest, etc. The State Commission in the appeal has, however, substantially modified the said order and had confined the relief to the payment of a sum of Rs. 19,300 with interest @ 12% per annum from 19.9.2009 till realization with cost of Rs. 5,000.

WE have heard Mr. M.G.V.R. Choudary, learned Counsel for the petitioner but had not the advantage of hearing the say of the respondent-Insurance Company as none appeared at the time of hearing of the petition though the Insurance Company was earlier represented on record through a Counsel.

THE facts and circumstances of the case which led to the filing of the complaint and passing of the impugned orders are amply noted in the orders of the Fora below and need no repetition at our end. However, for the purpose of answering the.present proceedings, we may simply note that the consumer dispute raised before the consumer Fora was in relation to the non-settlement/unsatisfactory settlement of an insurance claim in respect of damage to a Tata Heavy Tipper, which was got insured by the complainant for a sum of Rs. 7,50,000. The vehicle in question met with an accident and got substantially damaged, according to the complainant which required an expenditure of more than 4,32,700 for reinstating the said machine to its original position which he in fact incurred but according to the Insurance Company, cost of the repairs for repairing the machine could not be more than Rs. 20,000 in all. The complainant filed various invoices from different workshops as also from Tata Company from where he had purchased chassis at a price of Rs. 1,33,900. The District Consumer Forum going by the evidence and material brought on record had allowed the complaint to the above extent but the State Commission on a consideration of the plea of the Insurance Company that the repair work was got done from a outside agency other than the Tata Workshop, has reduced the claim substantially going by the report of the Surveyor. Learned Counsel for the petitioner would assail the order passed by the State Commission on the ground that on the face of the overwhelming evidence and the material on record, the State Commission has erred in taking the view which it has taken. He prays that even if the entire amount spent by the complainant cannot be reimbursed to him at least he should get substantial part of the said amount, which he has already spent. We find merits in this contention. There is material on record to show that the damage was to several important/functional part of the vehicle like chassis, etc., which,in our opinion, required replacement rather than repair. The vehicle was about six months old at the time of peril. Assuming that replacement of other parts was not necessary but since the complainant had replaced the chassis at Rs. 1,33,900 and had carried other repairs, we are of the view that it would adequately meet the ends of justice if we quantify the compensation payable to the complainant at Rs. 1,75,000 in all.

IN the result, the revision petition is partly allowed and the orders passed by the fora below are modified to the extent that the complainant-opposite party shall pay a lump sum compensation of Rs. 1,75,000 to the complainant towards insurance claim along with interest @ 9% per annum w.e.f. the date of filing of the complaint till its payment in case payment will be made within six weeks from today, failing which, the amount shall carry interest @ 12% per annum w.e.f. the date of default. The petitioner is also awarded a cost of Rs. 10,000 throughout. Revision Petition partly allowed.