ORIENTAL INSURANCE Company Limited vs SUCHA SINGH

ON a complaint instituted by Sucha Singh, the owner of DCM Toyoto truck 1986 Model No. PAT-9176, the District Forum-II ordered on 7.1.1999 that the Oriental Insurance Company Limited was liable to pay the sum of Rs. 1,25,000/- on account of extensive damage to the vehicle together with interest @ 12% p.a., garage charges @ 300/- per month and costs Rs. 1,100/-. Aggrieved against it, the present appeal has been preferred by the Oriental Insurance Company Limited. There is also a cross-appeal No. 24 of 1999, wherein it has been averred that the interest should have been allowed @ 24% p.a. and not merely @ 12% p.a. and that the owner of the vehicle was entitled to garage charge at the rate of at least Rs. 10 per day for maintaining the salvage.

IT is not disputed that the vehicle in question was insured from 7.3.1989 to 6.3.1990 and it actually met with an accident near Kotputli (Rajasthan). The vehicle was carrying green vegetables and the driver lost his life on the spot. The intimation regarding the occurrence was conveyed to branch office of the Insurance Company at Jaipur on 29.9.1989 and a Surveyor was also deputed. The report of the Surveyor Annxure R-3 shows that the loss was assessed at Rs. 1,25,000/-. However there is a specific mention that salvage could fetch around Rs. 60,000/-. But neither owner nor his attorney took any step for return of the salvage. The fact that the loss was valued at Rs. 1,25,000/- also finds mention in Special Power of Attorney Annexure C-1 dated 5.9.1994. IT is well established that the owner or his attorney have not delivered salvage to the Insurance Company, where salvage has been specifically assessed at Rs. 60,000/- and on account of the failure of its deposit the owner was only entitled to Rs. 65,000/-. IT was not a case of total loss. After considering all these facts, we partly accept this appeal and reduce the amount awarded from Rs. 1,25,000/- to Rs. 65,000/-. Infact in a case of well established accident and the loss Insurance Company was required to remit the sum of Rs. 65,000/- within a period of three months of the date of the accident. The finding that the owner is entitled to interest @ 12% p.a. from 1.1.1990 is affirmed. The claimant is also held entitled to a sum of Rs. 500/- as total costs. With this modification the appeal preferred by Oriental Insurance Company Limited and others stands disposed of. As regards Cross Appeal No. 24 of 1999 by Sucha Singh for enhancement in the rate of interest and garage charges for maintaining the salvage, the owner-appellant is not held entitled to any relief in the circumstances of the case and his cross-appeal stands dismissed. Announced. Appeal disposed of with modifications.