RAJIV vs National Insurance Co. Ltd.

THIS is a complaint under Section 17 read with Section 12 of the Consumer Protection Act.

THE complainant company owned a Swaraj Mazda Lorry bearing registration No. TAR 6885. It was insured with the opposite party for the period from 14.3.91 to 13.3.92. It met with an accident on 17.7.91 and the same was immediately brought to the notice of the opposite party and a claim was made. As the claim has not been settled, this complaint has been laid. The opposite party contended that the surveyor appointed by the insurer conducted a survey and tried to settle the matter amicably. The Company on the basis of the report of the surveyor offered to the complainant to pay at Rs. 1,80,000/- on total loss basis, but the insured was unwilling to accept the same. Though the insured''s estimate of the vehicle is Rs. 2,20,000/-, the surveyor fixed the market value only at Rs. 1,80,000/- and it was offered. The insured''s repair estimate at Rs. 3,08,356.65 is not only high and exaggerated and is over and above the estimated value of Rs. 2,20,000/-. The claim is untenable.

Exhibits A1 to A19 and B1 to B25 are marked. Proof affidavits are filed. Counsel on both sides are heard.

EXHIBIT B8 is the report of the surveyor appointed by the insurer. He has estimated the amount of compensation on repair basis at Rs. 1,53,481 and on total loss basis at Rs. 1,80,000/-. The opposite party has affered to pay Rs. 1,80,000/- to the complainant on total loss basis which has been rejected by the complainant. The claim of the complainant for Rs. 3,08,356.65 on repair basis is totally untenable as rightly pointed out by the learned Counsel for the opposite party. It is not only an exaggerated claim but is also over and above the policy amount of Rs. 2,20,000/-. During the course of the argument before us, the learned Counsel for the complainant and the complainant whose parts was present before us represented that the complainant wanted to take the damaged vehicle and settle the claim on repair loss basis at Rs. 1,53,481/- as assessed by the surveyor appointed by the opposite party under Exhibit B8 dated 8.10.91, and interest on this amount from the date of the claim till payment. The learned Counsel for the opposite party has and can have no objection to settle the claim on repair basis at Rs. 1,53,481/- which is the amount arrived at by its own surveyor. The question of interest is however left to the Commission. We hold therefore that the complainant will be entitled to claim from the opposite party Rs. 1,53,481/- on repair basis with interest thereon at 18% from the date of the accident till payment.

IN the result it is ordered as follows: 1. The opposite party shall pay to the complainant Rs. 1,53,481/- with interest thereon at 18% from the date of the accident i.e., 17.7.91 till payment. 2. The opposite party shall also pay to the complainant Rs. 2,000/- as costs. Complaint allowed with costs. _________________