RANGI INTERNATIONAL vs NEW INDIA ASSURANCE CO.

THE complainant M/s. Rangi International has filed this complaint through its proprietor Shri Surinder Singh against the O.P./New India Assurance Co. Limited. THE complainants were the owner of Ashok Leyland Truck No. DL-IL-C2599 and they got the Truck insured with the O.P. Insurance Company for a sum of Rs. 5 lakhs for the period 8.11.1997 to 7.11.1998. THE said truck met with an accident on 19.2.1998 at about 11.00 p.m. and it was completely damaged. THE driver of the truck died on the spot and the cleaner also died before reaching the hospital. A report about this occurrence was lodged by the complainant on the same day at Police Station, Indirapuram, Ghaziabad and the complainant also informed the O.P. vide letter dated 20.2.1998 and requested to depute a Surveyor for inspection of the truck. THE complainant after completing all the formalities also submitted the claim on 11.11.1998. However, the O.P. did not respond in respect of the request of the complainant''s to expedite the settlement of the claim. It is alleged that the O.P. did not settle the claim. Hence the complainants were forced to file a complaint before the District Forum, alleging deficiency in service on the part of the O.P. and claiming an amount of Rs. 5 lakhs i.e., the insured value of the truck along with 24% interest.

THE O.P. in its reply stated that the complainants themselves are responsible for the delay as he has not complied with the formalities for 7 months and hence on the report of the Surveyor the claim was closed as no claim on 30.9.1998. However, subsequently the claim was re-opened on the request of the complainant vide his letter dated 11.11.1998. Still the complainant did not co-operate with the Surveyor Shri Jeevan Aggarwal. Besides the Surveyor assessed the loss of Rs. 2,68,500/- on total loss basis. THE O.P. offered this amount in settlement of the claim. However, there was a condition attached to it that the complainant will withdraw the petition filed before this Commission. THE complainant accepted the offer without prejudice to his rights and conditions and refused to withdraw the case filed before this Commission. Hence the dispute could not be settled. We have heard both the parties and have considered the entire documents on record. Admittedly the truck of the complainant was insured for Rs. 5 lakhs by the O.P. Insurance Company after payment of premium. Hence the Insurance Company was providing service to the complainant. It is also not disputed that the truck met with an accident on 19.2.1998 in which the driver and cleaner died. However, there is nothing on record to prove that the truck was a total loss beyond repairs. The Insurance Company on the basis of the report of the Surveyor offered to settle the claim for Rs. 2,68,500/-. However, the condition attached with it was unreasonable that the complainant should withdraw his complaint before the Consumer Court. Since this condition was not accepted by the complainant, nothing was paid against the claim of the complainant. The Surveyor Shri Jeevan Aggarwal assessed the value of the truck at the market value of Rs. 2,30,000/- and recommended to settle the claim on total loss basis for Rs. 2,70,000/-. Admittedly the truck was registered in the year 1996 and the accident took place in 1998. The market value of the truck must have been reduced within a period of 15 months. If it was Rs. 5 lakhs at the time of purchase, at the time of accident it may be around Rs. 4 lakhs. The Surveyor has assessed the value of the salvage of the vehicle to the tune of Rs. 90,000/-. There is nothing on record to prove that the complainants have handed over the salvage to the Insurance Company. Hence if this amount is also reduced from Rs. 4 lakhs the balance comes to Rs. 3,10,000/-.

Considering all the above factors, in our view, interest of justice would be met if the Insurance Company is directed to pay the amount of Rs. 3,10,000/- to the complainant along with 10% interest from the date of claim till payment.

IT is relevant to note that even though the Insurance Company was liable for deficiency in service in settling the claim within a reasonable time but the complainant also was a defaulter in not completing the formalities required for the settlement of the claim. Hence in our view 10% interest on the claim amount shall be sufficient compensation to the complainant. The complaint is allowed and the O.P. New India Assurance Company is directed to pay Rs. 3,10,000/- to the complainant in settlement of the claim along with 10% interest from the date of claim till payment. The O.P. is further directed to pay Rs. 5,000/- as cost of litigation.

THIS order should be complied with, within one month of the receipt of this order, failing which the complainant shall be free to take appropriate action under Sections 25/27 of the Consumer Protection Act. Complaint allowed.