New India Assurance Co. Ltd. vs JAYAPAL

THE opposite party New India Assurance Company is the appellant.

THE complainant had insured his lorry with the opposite party. THE lorry met with an accident on 2.5.91 resulting in damages. THE complainant made a claim for damages with the opposite party which was registered on 31.5.91. THE complainant got the lorry repaired. One Company repaired the engine, and another Company repaired the body. According to the complainant the repair charges as per the bills of the two Companies came to Rs. 76,379.31. THE bills were submitted to the opposite party. But the opposite party was prepared to pay only Rs. 23,934/- and it had sent a discharge certificate on 23.3.92 for that amount to be signed by the complainant. On these grounds the complaint has been filed for directing the opposite party to pay the sum of Rs. 76,379.31 with interest thereon and for compensation of Rs. 20,000/-. The opposite party contended that as per the independent Surveyor appointed by it, who had considered the bills submitted by the complainant, the actual damages would be Rs. 23,934/- and to this amount only the complainant would be entitled to, and a discharge warrant sent to the complainant was not accepted by it. It was further contended that once the quantum of compensation is in dispute, under the terms of the policy the matter should have been referred to an Arbitrator.

The District Forum held that the matter need not have been referred to an Arbitrator and the Consumer Forum itself could decide the issue. It rejected the Surveyor''s Report as to quantum of damages. Then considering the bills and vouchers submitted by the complainant and deducting there from some depreciation, it had come to the conclusion that the value of the damages would be Rs. 60,659/-. It directed the opposite party to pay this amount to the complainant with interest thereon @ 18% p.a. and also Rs. 3,000/- as compensation, besides a sum of Rs. 300/- as costs.

IN the appeal after hearing both sides and perusing the records we are unable to accept the order passed by the District Forum. It is common case that on hearing about the accident the Opposite party INsurance Company has appointed an independent Surveyor and he has given a report according to which the damage to the lorry was estimated at Rs. 23,934/-. There is no reason as to why his report who is an expert should not be believed. Maybe the complainant has submitted bills and vouchers as per which the repairs work done is of the value of Rs. 76,379.31. The repair works has been done by the repairers of the complainant''s own choice. The said bills and vouchers cannot be on their face value believed to be genuine and true. There is every possibility of some bills being false and some bills being exaggerated. They are not tested by cross-examination of the repairers who issued those bills. But the District Forum seems to have relied on those bills as believable. Deducting some amounts as depreciation from the said bill amount of Rs. 76,379.31 the District Forum has arrived at the value of Rs. 60,659/-. Considering all these circumstances we are of the view that the finding of the District Forum cannot be accepted as correct. As regards the value arrived at by the opposite party at Rs. 23,934/-, that amount certainly the opposite party is liable to pay. Deducting this amount regarding the balance amount claimed by the complainant in our view the matter may be referred to an Arbitrator as provided in the insurance policy or to a Civil Court so that it can decided with sufficient evidence that could be adduced unlike in the Consumer Forum which decides cases only by a summary procedure. There is of course some delay in the opposite party offering the above said sum of Rs. 23,934/- because the claim was made on 31.5.91 and the said sum was offered only on 23.3.92. Regarding this delay the District Forum has granted a sum of Rs. 3,000/-stating that during this period the complainant has suffered loss of earning. But it must be remembered that the complainant had got his vehicle repaired and therefore he could run his vehicle and he need not have waited for the opposite party to pay for damages. Therefore, the amount of Rs. 3,000/- granted as loss of earning cannot be sustained. The said delay caused by the opposite party can be compensated by granting interest on the amount agreed by them. Considering all these, the award of the District Forum is not aside, and instead it is ordered that the opposite party shall pay to the complainant a sum of Rs. 23,934/- with interest thereon @ 18% p.a. from 31.5.91 i.e., from the date of claim, till realisation. For any excess claim, the complainant will be at liberty to take initiative for decision by an Arbitrator as per the terms of the policy or file a civil suit. The appeal is thus disposed of. There will be no order as to costs. Appeal disposed of. _____________