Ghulam Qadir Wani vs United India Insurance Company Ltd.

THIS complaint has a chequered career. Complainant had insured his vehicle for a sum of Rs. 1,75,000/- in the year 1984-85 which was lost in an accident on 27.5.1984. The vehicle had fallen in the river Chenab and suffered total loss. These facts are admitted by the O.P. Claim was not settled by the O.P. Complainant lodged a complaint before this Commission at a belated stage and the complaint was dismissed by this Commission on the ground of laches and being barred by time. Hon''ble Division Bench of High Court set aside the order and found that complaint was filed in time and thus remanded the case back to the Commission. The written version has already been filed. Evidence also has been recorded. The only stand taken by the Insurance Company is that the vehicle could not be traced out from the river. However, market value of the vehicle at that time ranged from Rs. 70,000/- to Rs. 1,00,000/- which could depend upon the condition of the vehicle because vehicle was not traceable. So the Surveyor offered Rs. one lac to the complainant through his Attorney which was not acceptable to the complainant. Complainant insisted for the recovery of the whole sum insured which is Rs. 1,75,000/-.

HEARD learned Counsels for the parties. Virtually, there is no dispute about any fact excepting that the O.P. offered Rs. one lac as indemnification but the complainant insisted for the whole sum insured. Learned Counsel for the O.P. has rightly contended that O.P. cannot give whole sum insured. Indemnification is to be given on the basis of market value of the vehicle at that time, depending upon the conditions of the vehicle at the time of accident. Surveyor, appointed, had reported that the compensation should range from Rs. 70,000/- to Rs. 1,00,000/- and on that account communication also was going on between the Attorney of complainant and the O.P. in the year 1986. Argument of the learned Counsel for the complainant who insists that whole amount be given as compensation to the complainant, is not acceptable. We cannot travel beyond the report of the Surveyor who has assessed the loss from Rs. 70,000/- to Rs. 1,00,000/-.

For these reasons, therefore, we allow the complaint and direct the O.P. to indemnify the complainant by paying him Rs. one lac with 9% interest from 01/1987 till realisation. Learned Counsel for the O.P. has objected to the interest on the ground that the Surveyor had offered the money to the complainant but complainant did not accept this amount. We are not convinced by this argument. The money was not, however, paid by the O.P. It was only offered by the Surveyor. Moreover, compensation money has remained with the O.P. and they have utilised. So interest is payable as aforesaid.

THE indemnification amount shall be given to the complainant through Bank or if he produces NOC from the Bank, compensation amount shall be paid to the complainant personally. Secondly, amount of indemnification shall be paid to the complainant only after he transfers Registration Certificate of the vehicle in the name of the O.P. within three weeks. THE award shall be satisfied within four weeks from the date of transferring of Registration Certificate of the vehicle by the complainant in the name of the O.P. Complaint disposed of.