RAJASTHAN PACKING CO. (P) LTD. vs United India Insurance Co. Ltd.

COMPLAINANT, Rajasthan Packing Co. (P) Ltd. has filed this complaint under Section 12 of the C.P. Act, 1986 to claim a total amount of Rs. 9,10,080/- including interest @ 18% p.a. on the amount of Rs. 7,00,062/- from the O.Ps. for loss of the vehicle.

FACTS relevant for disposal of this complaint in brief are that the complainant had purchased a Tata Safari with Registration No. RJ 27 P 3149 and was insured by the O.Ps''. Co. for the period between 2.6.1998 and 1.6.1999 for Rs. 7,17,000/- for a period of one year. An initial premium of Rs. 12,107/- was made to the O.Ps. whereupon the O.Ps. issued a Cover Note No. 640677. It so happened that this vehicle met with an accident on the intervening night of 21.12.1998 near Kaltura and got damaged. First Information Report (FIR) No. 277/1998 was lodged at Police Station, Salumbar. It is the case of the complainant that the O.Ps. were immediately informed about the accident. The police after investigation submitted a Final Report No. 58/1998 in the matter. The grievance of the complainant is that although the claim was submitted to the O.Ps. on 8.3.1999 after getting an assessment of the loss caused to the vehicle from Classic Automobiles (P) Ltd. claiming an amount of Rs. 7,00,062/- from them; yet despite repeated reminders made on 5.11.1999, 4.1.2000, 12.6.2000 and 30.6.2000, the O.Ps. did not settle the claim. It is also the case of the complainant that the O.Ps. got a survey of the loss done from their Surveyor one Mr. R.K. Pitti who assessed the loss at Rs. 2,21,000/- on repair basis. Finding that the claim of the complainant has not been settled, the complainant filed this complaint against the O.Ps. on 2.11.2000. The O.Ps. have contested the complaint by filing a written version. The stand of the O.Ps. has been that the complainant did not inform them immediately about the occurrence of the accident and that for the first time the information was received by the O.Ps. on 6.3.1999. It has also been stated that since the complainant was not prepared to accept the loss on repair basis, another Surveyor Mr. S.K. Dhamija was deputed to assess the loss of the vehicle. According to the O.Ps., Mr. Dhamija assessed the loss of the vehicle at Rs. 5,50,000/- on total loss basis and after deduction of the salvage value of Rs. 2,80,000/- the O.Ps. were prepared and sent a communication through their Registered Letter dated 20.11.2000 to accept the reimbursement amount of the loss at Rs. 2,70,000/- but the complainant refused to accept this amount. It has, therefore, been urged that the complainant is without any foundation and that it be dismissed.

We heard the learned Counsels for the parties at great length and have carefully gone through the material made available on the record by the parties.

THE contention of the O.Ps. has been that they were not informed earlier than 6.3.1999 about the occurrence of the accident which took place on 21.12.1998. In support of this version, the O.Ps. have tendered Vehicle Accident Intimation at Annexure R-1 and on the basis of a date written at almost the bottom of the document as "8.3.1999", there is no endorsement whatsoever that this Vehicle Accident Intimation was not given earlier than this particular date i.e., 8.3.1999. In fact, this date 8.3.1999 has been put under the space and particulars given under the head "For Office Use". In our opinion, the date 8.3.1999 marked on this document appears to be in a different ink and comparatively bolder figures than the figures written in the particulars submitted by the complainant above the space reserved for "For Office Use". It is made out that the complaint was lodged about the occurrence of the accident on 21.12.1998 at Police Station Salumbar and FIR No. 277/1998 was duly registered. THE complainant has stated on oath that the occurrence of accident was immediately reported also to the O.Ps, which to us appears to be the normal conduct on the part of the complainant whose vehicle was insured for an amount of Rs. 7,17,000/- who lodged the FIR on 22.12.1998. Moreover, from the side of the O.Ps., no satisfactory evidence has been led to the effect that the intimation of the accident was not given to the O.Ps. immediately after the accident. THErefore, the plea of the O.Ps. that they were not informed about the accident soon after the incident does not find favour with us. Coming now to the question of assessment of loss, the O.Ps. have placed on record the survey reports of two Surveyors; one Mr. R.K. Pitti and the other of Mr. S.K. Dhamija. In the survey report of Mr. Dhamija the loss to the vehicle in question has been assessed at Rs. 5,50,000/- on total loss basis and the salvage value has been assessed at Rs. 2,80,000/-. This report of Mr. Dhamija is dated 29.5.2000 whereas earlier Mr. R.K. Pitti had assessed the loss at Rs. 2,21,000/- on repair basis. On the other hand, in support of his claim of Rs. 7,00,062/-, the complainant had filed an estimate as made by one Classic Automobiles (P) Ltd. wherein it has assessed the loss at Rs. 5,34,733.85 and labour charges at Rs. 26,750/- with another Rs. 7,062/- under Misc. head. In our opinion, the assessment of loss of the vehicle in question at Rs. 5,50,000/- on total loss basis appears to be just and reasonable out of which if the salvage value is deducted; then the net loss payable to the complainant comes at Rs. 2,70,000/-. It has been urged on behalf of the O.Ps. that the complainant had given his consent to accept this amount at Rs. 2,70,000/- for total loss of the vehicle after deduction of the salvage value of the vehicle, but we find no supporting document except the letter of the O.Ps. dated 20.11.2000 intimating to the complainant that they have accepted their claim for Rs. 2,70,000/- on net loss basis. As the facts appear, the complainant has not produced any evidence to support the version that the salvage value of the accidented vehicle is lesser than Rs. 2,80,000/-. We, therefore, accept the salvage value of the vehicle in question at Rs. 2,80,000/- as assessed by the Surveyor Mr. Dhamija. After deduction of this amount from the amount calculated at Rs. 5,50,000/- on total loss basis, the complainant is entitled to be paid a total amount of Rs. 5,50,000/- if the accidented vehicle is surrendered to the O.Ps. otherwise the complainant would be paid Rs. 2,70,000/- after deduction of salvage value at Rs. 2,80,000/- from the amount of Rs. 5,50,000/- on total loss basis.

IN either case, since there has been a considerable delay in not settling the claim of the complainant within a reasonable period, we award interest @ 12% p.a. with effect from 1.6.1999 till payment in respect of amounts as indicated above in both the situations. IN compliance, therefore, the amounts so calculated shall be payable by the O.Ps. to the complainant within a period of three months from the date of this order failing which the rate of interest shall stand enhanced @ 15% p.a. Both parties to comply accordingly. Cost on parties. Complaint disposed of.