PATEL GOPALBHAI SHANKARDAS vs Oriental Insurance Co. Ltd.

THE complainant purchased a brand new jeep car GJ-2-9818 from the manufacturer M/s. Mahindra and Mahindra. THE complainant insured the jeep car for the period commencing from 30-4-1990 to 29-4-1991 for the amount of Rs. 1,32,000/- the full amount of the jeep car and paid the premium. THE insurance was accepted and policy was issued which fact is not disputed by the Insurance Company. THE jeep car was hypothecated with Sidhpur Commercial Cooperative Bank Ltd., Sidhpur for obtaining the loan to purchase the jeep car. THE complainant had to deposit Rs. 38,000/- in order to get the loan of Rs. -1.32,000/- which was granted by the Bank.

THE complainant was paying interest according to bank rate and the car account from the bank has been produced by the complainant. It is alleged in para 2 that on 11-10-1990 i.e. within 6 months from the date of purchase the jeep car was stolen and this fact was immediately communicated to the Insurance Company. A regular complaint was lodged with the police. THE Insurance Company started investigation and did not settle the claim for a very long time. THE complainant was paying interest all the time and he was in need of money and, therefore, he requested the Insurance Company to make atleast part payment. It appears that part payment of Rs. 78,000/- was made on 13-1 -1992 i.e. after one year and three months. THEreafter the Insurance Company sent a cheque for Rs. 19,500/- on the basis of non-standard claim and also on the basis of full and final settlement which was not accepted by the complainant since his demand was much more than the amount offered. Since the full payment has not been made the complainant has filed this complaint on April 29, 1992 and has claimed principal amount of Rs. 54,000/-, 35,408/- bank interest @ 18%, penal interest @ Rs. 3,934.22, Rs. 12,141.28 cost incurred by him, Rs. 25,000.50 as damages and Rs. 65,021/- towards mental torture totalling to Rs. 1,95,505.00. 2. THE complaint has been resisted by the opponent mainly on the ground that the alleged jeep car which has been stolen was required to be used as a private car and was not meant for other use as per the terms and conditions of the policy of the jeep car in question and in contravention of the same the driver of the aforesaid jeep car has taken passengers in the said jeep and thereby committed breach of the condition of the policy and exposed to the risk not covered under the policy. This averment of the Insurance Company is totally vague and not supported by any particulars. THE Insurance Company has net filed any affidavit particularly the affidavit of the person who had seen the jeep car being used for carrying passengers with the consent of the complainant. In reply to this written statement which was not supported by any affidavit, the complainant has filed a rejoinder affidavit in which he has stated in terms that the jeep car was purchased for their private use and this jeep has never been used on rental basis. THE Insurance Company has not proved that the jeep car was ever used for carrying passengers. Even the reply sent by the Insurance Company before filing of written statement also contains only vague allegations without any proof. It may also be noted that the present case is not a case of accident or any damage done to the jeep car while it was alleged to be used to carry passengers. Had the jeep met with an accident while carrying passengers it could have said that the same was used at the time of accident for unauthorised use. In the instant case the jeep car has been stolen within six months from the date of the purchase. It was not a taxi jeep. It was possessing a private licence. In these circumstances, there is no substance in the objections raised by the Insurance Company. No other points have been raised. We are, therefore, satisfied that the claimant is entitled to the full amount of the insurance i.e. Rs. 1,32,000.00. The full amount having not been paid, the Insurance Company is liable to pay interest which the complainant had to pay to the Bank and also the interest on the amount invested by the complainant. The cheque for the amount of Rs. 78,000/- sent by the Insurance Company has been deposited in the car loan account. Hence the bank interest has been reduced to that extent from the date of the said payment.

It appears that the complainant has suffered without any reason and he is, therefore, entitled to damages and cost also. In para 8(2) the Insurance Company has stated that time was taken by them due to investigation of the claim and as soon as the same was over, the Company has offered Rs. 78,000/ - by cheque and thereafter Rs. 19,500/-. Even though the Insurance Company made an investigation, the investigation report has not been produced. The reason can be that such report may not help the Insurance Company. We, therefore, pass the following order.

THE complainant is entitled to the remaining amount of Rs. 54,000/-(Rs. 1,32,000-78,000). THE complainant was required to pay interest to the bank on the loan obtained for purchasing the jeep which comes to Rs. 38,000/- and the interest on Rs. 54,000/- @ 18%. THE total amount therefore comes to Rs. 1,06,645/-. We are also of the opinion that the complainant is also entitled for damages on account of pain and suffering and hardship. THEre is no direct evidence regarding the hardship. He has gone several times to the office of the Insurance Company, must have spent considerable amount. We, therefore, award Rs. 5,000/- on that account. ORDER The Insurance Company will pay to the complainant Rs. 1,06,645/- plus Rs. 5,000/- for the pain, suffering and hardship, with cost which we quantify at Rs. 1,000/- only. The aforesaid amount will be paid within 4 weeks frohi the date of receipt of the order failing which the Insurance Company will pay the interest @ 18% p.a. till the actual payment is made without prejudice to the rights of the complainant to file application under Section 27 of the Act. Complaint allowed.