National Insurance Co. Ltd. vs s. bhan gupta

APPELLANT was the opposite party before the State Commission where the respondent/complainant had filed a complaint alleging deficiency in service.

UNDISPUTED facts of the case are that the complainant had purchased a Maruti Esteem car for a sum of Rs. 4,80,000 and had obtained a policy cover against the risk of theft for which a cover note was issued, covering the risk from 6.9.1996 from the appellant company. The car met with a serious accident on 17.10.1996, the matter was reported to the police as also with the appellant. Surveyor was appointed and as per complainant the claim was proposed to be settled at Rs. 4,50,000; however this claim was not settled thus alleging deficiency in service a complaint was filed before the State Commission, who after hearing the parties allowed the complaint and directed the appellant to pay a sum of Rs. 4,50,000 together with interest @12% p.a w.e.f. 1.2.97 along with damages of Rs. 5,000 on account of inordinate delay in settling the claim as well as cost of Rs. 1,000. Aggrieved by this order this appeal has been filed before us by the appellant, Insurance Company. We heard the learned Counsel for the parties and perused the material on record as also the two Surveyor''s report on record. Since the basic facts are not in dispute, hence are not being gone into. Vehicle met with an accident; it was insured for Rs. 4,80,000. The first Surveyor appointed by the appellant, namely, Rajesh Wadhawan gave its report in following terms: "The salvage of the damaged vehicle would be the property of the insurers which they may collect from the insured before making final payment of his indemnity or deduct the value of the same in lieu thereof. Salvage value is Rs.l, 50,000/ -."

In the report of the second Surveyor, he has assessed the market value of the car between Rs. 4,00,000 to Rs. 4,10,000 and the value of the salvage at Rs. 1,25,000. We are unable to satisfy ourselves about the findings, pricing and value of salvage of second Surveyor. Nor has any reason been given on this account except that there are two hand written notes of two car agencies evaluating the car at Rs. 4,00,000 to Rs. 4,01,000, but it has a tail which states........ "......however it may differ according to the condition of the vehicle..." . Since the condition of the vehicle has not been described, we are inclined to agree with the report of the first Surveyor, in which the market price of the car is assessed at Rs. 4,50,000 and the value of salvage at Rs. 1,50,000. We accept this report in toto. On this basis we see no ground to interfere with the order passed by the State Commission except that the State Commission''s order is silent with regard to the salvage. Since Insurance Company deals with covering of risk of vehicle and do not deal with damaged vehicles, in our view, it will be proper that the appeal be allowed to the extent that the respondent /complainant shall become entitled to an amount of Rs. 3,00,000 along with rate of interest as well as the period given in the order passed by the State Commission. The respondent/complainant shall have right to the salvage as well, and to dispose of in the way he likes. Only to this extent the appeal is allowed.

THE appeal is disposed of in above terms. Appeal partly allowed.