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United India Insurance Co. Ltd vs AMAR NATH GUPTA

National Consumer Disputes Redressal Commission · Decided on 13 August 1998 · Citation: 1998 2 CLT 433 : 1998 3 CPJ 118

HON’BLE JUDGES
J.B.Garg , Sada Nand , P.Ojha J.
RESULT
Appeal dismissed
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Judgment

3 paragraphs · 367 words
1.

THE theft of a truck owned by the respondent took place on 31.8.1988, the United Indian Insurance Company has been held liable by the District Forum-II, Chandigarh on 17.3.1998 liable to pay a sum of Rs. 1.49,500/- together with interest @ 15% per annum and costs Rs. 1,100/-. Aggrieved against it the present appeal has been attempted.

2.

AMAR Nath Gupta of Chandigarh owned truck No. HPA-1511 and it was comprehensively insured in the sum of Rs. 2 lacs from 5.9.1987 to 4.9.1988. The theft of this truck took place on 31.8.1988. The Daily Diary Report No. 14 was recorded at Police Station, Chandimandir on 31.8.1988 and thereafter it took the shape of an FIR on 18.9.1989 and it remained untraced (Annexure R-9). Once the occurrence of theft has been reported to the Police and it has also been brought to the notice of the Insurance Company, a formal report that it remained untraced and the theft took place within the period specified, the Insurance Company is liable to compensate the insured. We are of the view that once loss has been reported and its bona fides are not in doubt from the very beginning as in this case the demand of certificates whether road tax has been paid or keys of the vehicle have been handed over and whether the registration certificate has been duly transferred in the name of the Company etc. are the formalities which it may not be possible for the individual to carry out. The Insurance Company should also come forward and lend a helping hand in fulfilment of the requirements.

The theft took place on 31.8.1988 and usually the Insurance Company is required to satisfy the claim within three months. Here it has remained unsatisfied even after a formal report of the police that the case was untraced, has been conveyed. Thus in view of all these circumstances, there appears to be no justification for interference. The compensation of Rs. 1,49,500/ is the approved amount which finds mention in the letter issued by the appellant on 7.10.1992. The interest awarded by the District Forum-II, Chandigarh w.e.f 1.6.1990 also does not call for interference. The appeal is hereby dismissed. Appeal dismissed.