National Insurance Company Ltd. vs HARISH CHAWLA

THIS is an appeal against the judgment and order passed on 14.5.1993 by District Consumer Forum, Dehradun in Complaint Case No. 891 of 1992.

FACTS of the case stated in brief are as under : The complainant owns a taxi which was insured with National Insurance Company Limited. During the continuance of the insurance policy, the taxi met with an accident on 6/7.10.1990. The complainant lodged a claim for a sum of Rs. 70,000/- and inspite of completion of all the formalities, as required, the claim was not settled. Hence the complainant lodged the complaint before District Consumer Forum, Dehradun. The version of the appellnat is that the claim was settled for a sum of Rs. 58,000/- and not for Rs. 70,000/-. The claim was repudiated on 12.7.1991 for which complete reasons were also given. The ground for repudiation of the claim was that at the time of accident excess passengers were seatd in the taxi. There was permission for carrying six passengers only while ten passengers were travelling in the taxi at the time of the accident, which is a clear voilation of the terms of the policy. It has also been alleged that the claim was not filed within the stipulated time i.e. within one year of the repudiation and it is time barred.

After considering the case of the two parties, the learned District Forum came to the conclusion that there was deficiency in service on part of the appellant National Insurance Company Limited and the appellant was directed to pay to the complainant a sum of Rs. 58,000/- against the claim and Rs. 17,000/- towards the harassment and interest, total of Rs. 75,000/-.

AGGRIEVED against this order of the learned Forum, the appellant has come up in the appeal challenging the correctness of the order passed by District Consumer Forum, Dehradun. We have heard the learned Counsels for both the parties and perused the records of the case.

LEARNED Counsel for the appellant argued that the capacity of the taxi was for six passengers which was indicated in the policy. LEARNED Forum has considered this position in detail and has mentioned in its judgment and order that the overloading of the taxi was not the direct reason of the accident. The learned Forum has also mentioned that out of the 10 passengers in the taxi at the time of the accident, four were children - three of which were less than 4 years of age and one was 5 years of age. On the basis of it, learned Forum has come to the conclusion that there was excess passenger by only half and it cannot be the cause of the accident. LEARNED Counsel for the appellant has not been able to show that observation of the learned Forum that excess passenger by half was responsible and contributed to the causing of the accident of the taxi. We find no flaw in the judgment and order of the learned Forum and the finding given by the Forum is based on the facts and hence they cannot be set aside. District Consumer Forum, Dehradun, has only awarded the claim in terms of the report of the Surveyor and after adding interest and cost, the claim amount comes to Rs. 75,000/-. The interest has been awarded only @ 12%. The learned Forum has also directed that if the payment of the claim is not made upto 30.6.1993, then interest @ 18% will be charged on Rs. 75,000/- from 1.7.1993. It has been brought to our notice during the course of the arguments that a cheque for Rs. 75,000/- was deposited before the learned Forum. The cheque has the validity of six months and by the time this judgment is being delivered, the date of expiry of the cheque would have come to an end. The Insurance Company should have deposited the amount by means of a fixed deposit receipt. Therefore, the Inurance Company shall pay interest till the entire amount is paid to the complainant and if any part of the amount has already been paid then the interest on that part will cease from that date. Order The appeal is dismissed with cost of Rs. 2,000/- and the judgment and order of the District Consumer Forum, Dehradun, are confirmed. Let compliance, if not already made, be made within a period of two months from the date of the order. Let copies of the order be issued to the concerned parties as per norms. Appeal dismissed with costs.