Oriental Insurance Co. Ltd. vs ASHOK DIWAN

-THIS appeal, under Section 15 of the Consumer Protection Act, 1986, is directed against the order dated 23.7.2001 in Complaint No. 38/2000 by District Consumer Disputes Redressal Forum, Jagdalpur, Bastar, (hereinafter called the ''District Forum'' for short) directing the appellant to pay a sum of Rs. 37,000/- as compensation to the complainant/respondent.

UNDISPUTEDLY the complainant is the owner of the vehicle Maruti 800 No. M.P. 25-A-9696 which was comprehensively insured with the appellant/insurer for the period from 12.4.1999 to 11.4.2000. The said vehicle met with an accident on 26.7.1999 i.e. during the currency of policy. It is also not in dispute that appellant/insurer has already paid a sum of Rs. 60,000/- to the complainant/appellant towards his claim under the policy. The incident was reported by the complainant to the appellant upon which initially Surveyor Prakash Jain was appointed who assessed the value at Rs. 1,37,000/- and the value of the salvage at Rs. 62,000/-. It is also not in dispute that the complainant/respondent has sold salvage for a sum of Rs. 50,000/-. The claim of the complainant was, however, repudiated by the appellant/insurer, and hence he filed the complaint claiming compensation.

The District Forum in the impugned order held that the valuation of the loss to the vehicle as estimated by Surveyor Prakash Jain deserves to be accepted. In view of the above valuation, the balance amount of Rs. 37,000/- (Rupees thirty-seven thousand) accepting the salvage amount at Rs. 40,000/- and after adjusting the amount already paid by the appellant/insurer to the respondent was awarded.

THE learned Counsel for the appellant submitted that since the Surveyor admittedly held that the complainant/respondent sold the salvage at Rs. 50,000/- the deduction of that amount instead of Rs. 40,000/- should have been made. It was submitted that in view of above, the amount of compensation deserves to be reduced. We have considered the submission as above of the appellant''s learned Counsel. Respondent''s Counsel does not challenge the value of the vehicle at Rs. 1,37,000/- as estimated by the Surveyor. It is also not in dispute that the salvage was sold by Rs. 50,000/- by the complainant/respondent and that Rs. 60,000/- have already been paid by the appellant/insurer to the complainant/respondent towards his claim under the policy. Thus the amount received on selling the salvage as well as amount paid in cash deserves to be deducted from the value of the vehicle estimated by Surveyor Prakash Jain. Thus after making deduction as above, only Rs. 27,000/- deserve to be further paid to the complainant/respondent, by the appellant/insurer towards full settlement of his claim under the policy.

THE District Forum by his impugned order directed to pay Rs. 37,000/- by the appellant to the complainant/respondent. THE said amount deserves to be modified as above. Accordingly, the appeal is partly allowed. Impugned order is modified and instead of Rs. 37,000/- directed to be paid by the appellant to the complainant/respondent, as directed by the District Forum, the appellant/insurer shall only be liable to pay Rs. 27,000/- to the complainant/respondent, with interest at the rate and from the date as directed by the District Forum. Appeal partly allowed.