Ish Kapoor vs ORIENTAL INSURANCE COMPANY LIMITED

THE complainant purchased one Tata Sumo No. HR - 49 -2781 from M/s. Cargo Motors Limited for Rs. 3,64,552/ - on 21.5.1997. It was financed by M/s. India Lease Development Limited -respondent No. 2 and was insured for Rs. 3,65,000/ - for the period 27.11.1997 to 26.11.1998 with respondent Nos. 2 and 3. On 30.11.1997 when this vehicle was coming from Jammu to Kalka it met with an accident at Rajbagh with another vehicle and resulted in total loss. The respondent Insurance Company has made an offer of Rs. 2.85 lacs. Since the accident took place within a period of six months the complainant was not satisfied with the aforesaid offer and the claim put forward is as under : "Principal sum i.e. amount vehicle was insured Rs. 3,65,000.00 Amount/interest payable to opposite party No. 2 Rs. 1,32,000.00 Carriage charges paid Rs. 5,000.00 Charges paid for taking estimate Rs. 4,000.00 Loss of business, mental harassment and tension Rs. 1,00,000.00 Travelling expenses from Kalka to Parwanoo and back by taxi Rs. 200/ - per day from 28.11.1997 to28.11.1998 Rs 72,000.00 Costs of complaint Rs. 10,000.00 Total Rs. 6,88,000.00

IN a reply filed on behalf of all the respondents the occurrence has been admitted but the total loss has been assessed at Rs.2,85,000/ -. The respondents wanted that the registration should be transferred in favour of the Insurance Company. Besides this, the original policy, R.T.C. and salvage of the vehicle were also required. A letter addressed to the Insurance Company by the Surveyor dated 25th June, 1998, Annexure C -8 shows that it was a case of total loss. Since the occurrence took place after about 5 months of the purchase taking into account the depreciation which the respondents claimed on account of Clause 3 of the insurance policy the loss assessed at Rs. 2.85 lacs does not call for enhancement.

THE conclusion is that M/s. Oriental Insurance Company Limited -respondent No. 1 shall pay the aforesaid sum of Rs. 2,85,000/ - together with interest @ 12% starting after exempting a period of three months from the date of the accident till realisation. It is further ordered that after recovery the amount shall be payable to M/s. India Lease Dev. Limited, SCO 373 -74, Sector 35 -B, Chandigarh -respondent No. 2, who admittedly financed the vehicle. The respondent No. 1 shall pay costs of Rs. 2,000/ - to the complainant. The balance amount, if any, shall be disbursed to the complainant. The salvage shall be handed over to respondent No. 1 at Kalka or Chandigarh within 15 days as contemplated in the affidavit of the complainant dated 6.4.1999.