United India Insurance Co. Ltd. vs Alok Kumar

MR. Alok Kumar had his vehicle insured through the appellant, United India Insurance Company Limited (for short Insurance Company) which vehicle met with an accident on 21.5.2002. In due course of time claim was registered, Surveyors were appointed but on finding that there was delay in settlement of the claim, Sri Alok Kumar went to the District Forum with Complaint Case No. 73/2003. The District Forum has passed final order on 21.1.2004 directing payment of Rs. 1,80,000/- with 9% interest with effect from 1.9.2002 till the date of payment. It has also directed payment of Rs. 1,16,250/- treating that to be the rent for parking of the vehicle in a garrage which was claimed by the complainant on the ground of delay in payment.

ADMITTEDLY the aforesaid figure of the sum of Rs. 1,80,000/- has reached as the paying liability of the appellant on the basis of a compromise between the appellant/Insurance Company and the complainant. That point, therefore, cannot be re-opened. The only issue now surviving for consideration is whether the sum of Rs. 1,16,250/- allowed by the District Forum as rent for parking of the vehicle in a garage is valid or not.

Mr. Tarun Kumar Misra, learned Counsel for the appellant vehemently argued that parking of the vehicle was not as a result of any direction or request on the part of the appellant. It was a voluntary action of the complainant and he is responsible for the same and, therefore, the liability of the said amount of Rs. 1,16,250/- could not have been fixed by the District Forum upon the appellant.

MR. Anil Kumar Misra, learned Counsel for the respondent/complainant argued vehemently that not only that the sum of Rs. 1,16,250/- should be paid by the appellant but it should also be asked to pay some further amount as compensation because of the undue delay caused in payment of the amount which was compromised by the complainant with the appellant. He emphasised that in the instant case neither in the District Forum nor here has the appellant filed the copies of the Surveyor''s report which according to him indicates that the value of the repairing should be around Rs. 3,25,000/-. He further argued that the vehicle was taken to the garage known as Uttam Toyota situated at Meerut Road, Ghaziabad at the asking of the Surveyor appointed by the appellant. In this connection, he drew attention to the general practice that Insurance Companies have approved garages and it is their estimate only which is accepted or considered and if a private workshop submits the estimate which workshop is not approved, is not acceptable to the Insurance Company. He said that Uttam Toyota is a recognised work-shop where the vehicle is generally stationed for repairs and if the complainant is asked to pay the charges which have been shown in the letter of the said garage Uttam Toyota dated 9.10.2004 asking payment of Rs. 1,35,000/-, the complainant shall feel doubly victimized for the reason that he chose the said garage only at the asking of the Surveyor appointed by the appellant. There is no doubt that there has been enormous delay in making of the payment of the insured amount to the complainant. So, much so, the Commission had to direct through the interim order dated 29.4.2004 at the time of admission of this appeal that the appellant shall have to deposit the entire amount of Rs. 1,80,000/- atleast in cash or by Bank Draft with the District Forum, This has been done.

UNDER the circumstances, there is force in the argument that some amount of compensation further will have to be levied on the appellant so that the amount of stationing vehicle in the garage is to some extent reduced. The appeal consequently succeeds in part only and is disposed of with the following directions : (1) The appellant shall pay Rs. 1,80,000/- with 9% interest upto date counted from 1.9.2002. The amount deposited with the bank and the interest accruing on the said deposited amount shall be paid to the complainant within one month on production of the certified copy of this order before the District Forum. If there is any shortage of interest in the aforesaid amount regarding payment as directed above, the appellant shall pay in cash or Bank Draft before the District Forum the said deficit amount within another one month which shall be paid by the District Forum to the complainant within a week of receiving it from the appellant.

(2) The appellant shall pay Rs. 25,000/- as parking charges to the complainant for the delayed payment made inspite of the agreement between the parties.

(3) A total sum of Rs. 5,000/- shall be paid by the appellant towards the cost of the litigation in the District Forum and here.

No further amount is payable by the appellant. The appeal stands finally disposed of with the aforesaid directions. Let copy of this order be made available to the parties as per rules. Appeal partly allowed.