NEW INDIA ASSURANCE CO vs KARUR CONSUMER PROTECTION COUNCIL

THE opposite party New India Assurance Company Ltd. against which an award has been passed by the District Forum, is the appellant. THE complainant had insured his vehicle with the opposite party. During the currency of the insurance, the vehicle met with an accident. THE complainant made a claim for Rs. 33,000/-, but the opposite party replied stating that the damage caused to the vehicle would be only Rs. 3,681/- and deducting the salvage amount of Rs. 1,500/- the amount payable to the complainant would be only Rs. 2,181/-. Being not satisfied with the amount offered and alleging deficiency in service on the part of the opposite party the complaint was filed.

THE opposite party contended that as per their Surveyor''s report the damage caused to the vehicle was Rs. 3,681/- and deducting the salvage amount of Rs. 1,500/- they offered a sum of Rs. 2,081/- but the complainant was not prepared to receive it. THErefore there was no deficiency in service on their part. The District Forum, on consideration of the evidence, held that the photographs filed by the opposite party clearly showed that the Surveyor''s estimate is ridiculously low and the damage would be at least to the extent of Rs. 10,000/-. So holding, it passed an award for the said sum of Rs. 10,000/- with interest thereon at 18% per annum from 11.12.1992 till realisation and also costs of Rs. 500/-.

Now in the appeal, the learned Counsel for the appellant/opposite party submits that the order passed by the District Forum is not based on any evidence and it is arbitrary. We find that without assigning any reason the District Forum has simply said that the Surveyor''s estimate is ridiculously low and the District Forum on looking at the photographs filed, has taken the view that the damage must be Rs. 10,000/-. We are of the opinion that this view of the District Forum is not correct. It appears there are two Surveyors'' reports viz., Exs. B-2 and B- 4 and both concur with each other. The Surveyors being independent persons, without sufficient reason, their estimate should not be overlooked. Further it is not in dispute that the policy excess must be excluded. In this view of the matter, we hold that an award can be passed for a sum of Rs. 2,181/- and for the balance amount, if the complainant feels aggrieved he may have his remedy in a Civil Court.

IT this view of the matter, we allow the appeal and pass an order for a sum of Rs. 2,181/-. We give liberty to the complainant to approach the Civil Court if he so desires for further claim. The said amount awarded by us will carry interest @ 18% per annum from 11.12.1992. The costs ordered by the District Forum will remain undisturbed. However there will be no order as to costs in this appeal. Appeal allowed.