UNITED INDIA INSURANCE CO. LTD. vs D.V.DEO

THESE are cross appeals being disposed of by one order. In this case vide impugned judgment dated 27-9-1994 state commission had directed payment of interest for the period from 12-7-1991 to 17-11-1992 on a total amount of Rs. 21,90,290/- assessed as the loss. The main ground of defence against the award is that the respondent/claimant had concurred with the assessment of the loss assessed by the surveyor after taking into account the salvage under insurance, if any. The loss had taken place, in July, 1991 and thereafter certain discussions on the basis of the Survey Report had taken place. Finally, this matter was resolved by settling the claim as indicated thereunder. In fact, even from the date of the acceptance of the final survey report by the Respondent it took two months to make the payment have written in their letter of 15th September, 1992, as under :- "We hereby concur with your assessment of the above loss for a net amount of Rs. 22,10,290/- after reckoning salvage under Insurance (if any) and policy excess. The assessment has been to our fullest satisfaction."

IN fact, from the record we find that earlier a surveyor by the name Mr. Krishnan was appointed who assessed the loss at Rs. 22,11,054/-. In spite of that no settlement of claim had taken place but on the contrary, the Appellant insurer proceeded to appoint another surveyor who again went into the entire material and gave his assessment on 15-9-1992 estimating the loss at Rs. 22,10,290/-. It clearly shows that but for a few rupees there was no difference in the assessments. It clearly shows that there was no deficiency in the assessment by the 1st surveyor. It appears that the insurer appointed the second surveyor only to delay payment. We feel that the interest should run from the report of the first survey''s report till the date of payment and not from the date of accident as has been ordered by the state commission. There is no other point urged before us except the rate of interest and period for which the interest was to be awarded. We have already dealt with the period of interest herein above. The State Commission has awarded interest at the rate of 12% p.a. on the amount settled till the date of payment i.e. 17-11-1992 which in our opinion is quite reasonable.

IN the result, Appeal No. 790 of 1994 filed by the insurer is disposed of with the modification of the state commission''s order with regard to the period for which interest is to be paid as noted above. The Appeal No. 158 of 1994 is barred by time also. The delay of 58 days in filing the appeal has not been explained properly. Therefore, this appeal is dismissed as time barred even though arguments on merits have been kept in mind by us while disposing of Appeal No. 790 of 1994. In the circumstances of the case parties are left to bear their own costs.