HUKUM CHAND vs UNITED INDIA INSURANCE CO. LTD

THIS revision petition has been filed by the petitioner/Complainant against the order dated 1.8.2008 passed by the State Consumer Disputes Redressal Commission, U.T., Chandigarh (in short, ''the State Commission '') in Appeal No. 2848/2001(Hry)RBT/272/2008 - United India Ins. Co. Ltd. Vs. Hukam Chand by which, while allowing appeal order of District Forum allowing complaint was set aside.

BRIEF facts of the case are that complainant/petitioner was owner of vehicle No. HR 14A/1023, which was insured with OP/respondent for a period of one year from 30.4.98 to 29.4.99. This vehicle was taken away by some persons on 15.6.1998 after administering some poisonous substance in the drink to the driver as well as conductor of the vehicle. Report was lodged with the Police on 17.6.1998 and intimation was also given to OP. OP repudiated claim. Alleging deficiency on the part of OP, complainant filed complaint before District Forum. OP resisted complaint and submitted that as vehicle was plied as taxi, whereas vehicle was insured as private vehicle and, thus violated terms and conditions of the policy, OP rightly repudiated claim and prayed for dismissal of complaint. Learned District forum after hearing both the parties allowed complaint and directed OP to make payment of insured estimated value along with 12% p.a. interest and further awarded Rs.5,000/ as cost of litigation. Appeal filed by the OP was allowed by the impugned order by the State Commission against which this revision petition has been filed. Heard learned Counsel for the parties and perused record.

LEARNED Counsel for the petitioner submitted that inspite of violation complainant was entitled to receive claim and learned District Forum rightly allowed complaint, but learned State Commission committed error in dismissing complaint; hence, revision petition be allowed and impugned order be set aside. On the other hand, learned Counsel for the respondent submitted that order passed by learned State Commission is in accordance with law; hence, revision petition be dismissed.

PERUSAL of record clearly reveals that vehicle of the complainant was insured with OP as private vehicle and during subsistence of insurance policy vehicle was stolen. Perusal of FIR further reveals that vehicle was used as taxi and thus, there was clear cut violation of the terms and conditions of the policy. Now, the question to be decided is whether complainant is entitled to receive any compensation inspite of violation of terms and conditions of the policy. Learned Counsel for the petitioner has placed reliance on (2008) 11 SCC 259 - National Insurance Co. Ltd. Vs. NitinKhandelwal in which Hon ''ble Apex Court has held that in case of theft of vehicle breach of condition is not germane. In that case also vehicle was insured for personal use and it was being used by the complainant as taxi, even then, order of State Commission allowing 75% claim on non standard basis which was upheld by National Commission was upheld by Hon ''ble Apex Court. Facts of the present case are similar as in this case also vehicle was registered as private vehicle but was being used as taxi and it was stolen during subsistence of insurance policy. In such circumstances, petitioner is entitled to 75% of the IDV value on non standard basis.

LEARNED Counsel for the respondent has placed reliance on judgement by this Commission delivered on 4.7.2013 - MadanLal Vs. Oriental Insurance Co. Ltd. in which complaint was dismissed as private vehicle was being used as a taxi. We do not agree with the view expressed in aforesaid revision petition in the light of judgment of Hon ''ble Apex Court in NitinKhandelwal (supra) case and revision petition is to be allowed and impugned order is liable to be set aside.

CONSEQUENTLY , revision petition filed by the petitioner is allowed and impugned order dated 1.8.2008 passed by learned State Commission in Appeal No. 2848/2001(Hry)RBT/272/2008 - United India Ins. Co. Ltd. Vs. Hukam Chand is set aside and order dated 21.5.2001 passed by learned District forum in Complaint No.210 - Hukam Chand Vs. United India Ins. Co. Ltd. is modified and respondent is directed to make payment of 75% of the IDV value of the vehicle on non standard basis along with 9% p.a. interest from the date of filing complaint till realization.