United India Insurance Co. Ltd. vs AMIYA KANA BASU MAJUMDAR

THE complainant is the owner of the motor Vehicle bearing No. MVC 3606 holding a valid stage carriage permit. It was insured with the opposite party and the period covered by the Policy was from 2.2.1996 to 1.2.1997. THE said vehicle met with an accident on 18.1.1996 and the matter was reported to the Insurance Company. THE complainant invited quotation from M/s. Bose Industries who estimated the value of repair at Rs. 99,500/-. THE complainant submitted the said quotation to the opposite party asking the latter to indemnify the loss. THE opposite party engaged a Surveyor who submitted his report assessing the damage at Rs. 42,508/-. THE vehicle was got repaired through M/s. Bose Industries at the cost of Rs. 99,500/-. THEreupon the complainant claimed compensation for this amount from the opposite party. THE latter repudiated the claim on the ground that the driver of the vehicle did not hold any valid licence on the date of the accident i.e. on 18.4.1996. THEreupon the complainant approached the Forum claiming cost of repair together with compensation for mental agony, harassment and interest etc.

THE case of the opposite parties is that the vehicle in question was being driven by a driver who had no effective licence of (P.S.V.) or (H.P.V.) at the relevant time and as such there has been a violation of the terms and conditions of the Insurance Policy (sic.) repudiation of the claim. Upon consideration of the materials the Forum found that the driver hold not only one but two valid driving licences at the relevant period. The Forum observed that the claim was repudiated by the Insurance Company on invalid ground and as such the Forum was pleased to award compensation for the loss suffered by the vehicle in question due to the accident. The Forum allowed the claim of the complainant as was assessed by the Surveyor appointed by the Insurance Company. Besides the Forum allowed Rs. 10,000/- as compensation. The Forum was pleased to direct the payment of interest @ 18% per annum from the date of accident i.e. from 18.4.1996 till actual payment. Feeling aggrieved thereby the Insurance Company has appealed.

There is no dispute that the complainant is the owner of the vehicle. It was involved in the accident on 18.6.1996. The vehicle was properly insured with the opposite party and the accident occurred during the validity period of the policy. The stand taken by the opposite party that the driver of the vehicle had no effective driving licence like passenger service vehicles and accordingly the opposite party repudiated the claim. The repudiation of the claim was challenged before the Forum on the ground that the driver Mr. Parimal Kr. Bose held a valid driving licence at the relevant time. The Forum noticed that the transport vehicle licence in favour of the said driver was issued for the first time in August, 1994 and it was renewed from time to time. There was an endorsement by the Licensing Authority dated 31.10.1996 that the driver had effective driving licence. It is of course true that the endorsement was made after the accident occurred. Nevertheless the fact remains that it was made retrospective in operation. The Annexure-A clearly shows that the driver was authorised to drive transport vehicle from the very beginning. The bus involved in the accident was a stage carriage vehicle and the driver had licence of driving the stage carriage vehicle. It appears from the body of the judgment that the Forum has elaborately dealt with this matter and came to the clear finding that the driver had effective licence of (PSV) and (HPV) at the relevant time. The Forum clearly held that this being the position there was no violation of the terms and conditions of the Policy. We have been taken through the judgment and we are in full agreement with the views taken by the Forum. Therefore, we cannot but conclude that the claim was repudiated by the Insurance Company not on valid ground.

THE complainant claimed compensation to the tune of Rs. 99,500/- and this claim was based on the report of M/s. Bose Enterprise. At the instance of the complainant a Surveyor was appointed by the Insurance Company who assessed the damage at Rs. 42,508/- and consequently the Forum was pleased to pass an award for this sum of money. We find that the Forum was perfectly justified in awarding this amount as cost of damage to the vehicle which was involved in the accident. The Forum has passed an award for the sum of Rs. 10,000/- for mental agony, harassment etc. Besides, the Forum has awarded interest at the rate of 18% per annum in favour of the complainant. Learned Counsel for the appellant submits that award of interest @ 18% is excessive. Learned Counsel for the respondent submits that the Hon''ble Supreme Court in appropriate cases was pleased to award compensation to the extent of 18% per annum. We have considered the submission of the learned Counsels for the parties and think that the facts and circumstances of the present case do not warrant award of interest @ 18% per annum. We think it would be just and proper if we award interest @ 12% from the date of accident i.e. on 18.4.1996 till actual payment on the amount of compensation awarded by the Forum. Since the complainant is suitably compensated by award of damages and interest @ 12% per annum we think that no further compensation should be awarded to him. In fine, the complainant would get Rs. 42,500/- as damages and interest @ 12% per annum on this amount from 18.4.1996 till payment. The claim for compensation is negatived. With this modification the judgment appealed against is affirmed. Appeal partly allowed.