United India Insurance Co. Ltd. vs SWARNLATA

THIS is an appeal against the order dated 20.6.2000 passed by the District Forum, Hardwar whereby the complaint of the complainant was allowed and the appellant, United Insurance Co. Ltd. was directed to pay interest @ 15% on the amount of Rs. 84,000/- (Rupees eighty-four thousand) to the complainant from 1.9.1998 to 19.1.2000 and also to pay a sum of Rs. 5,140/- (Rupees five thousand one hundred forty) as garage charges and Rs. 4,000/- (Rupees four thousand) as expenses in the transfer of the vehicle and Rs. 2,000/- (Rupees two thousand) as cost of litigation.

WE are not to enter into actual dispute because on facts the case has been decided and there is no objection of the Insurance Company regarding the payment of Rs. 84,000/- (Rupees eighty-four thousand) but the objection is only in respect of interest, garage charges of Rs. 5,140/- (Rupees five thousand one hundred forty), expenses of Rs. 4,000/- (Rupees four thousand) in the transfer of the vehicle and payment of cost of Rs. 2,000/- (Rupees two thousand). To decide this fact, it is to be seen that the Maruti car of the complainant was insured for a sum of Rs. 1,03,000/- (Rupees one lac three thousand). During the insurance period, it met with an accident on 31.5.1998, in which owner of the vehicle Rajkumar Singh died on the spot. Claim was lodged before the Insurance Company. Surveyor Sh. Bhupendra Singh was appointed. Again Sh. Anil Kumar Aggarwal was appointed as Surveyor. According to the Surveyor since the vehicle had met with an accident during the insurance period the complainant was entitled to total insured amount. The vehicle was got released on 22.7.1998 for transferring it in the name of the opposite party. It is alleged that the complainant is entitled to get the entire insured amount and a sum of Rs. 1,300/- incurred in bringing the vehicle from Muzaffarnagar to Hardwar, Rs. 20,000/- as compensation and Rs. 2,000/- as cost of litigation.

In the affidavit of Sh. Rajkumar Arora, Branch Manager dated 23.2.2000, the opposite party alleged that the complainant did not bring the vehicle to the office of the Insurance Company, therefore, the Insurance Company has not to pay Rs. 5,140/- (Rupees five thousand one hundred forty) as rent charges. There is no mistake of the Insurance Company when the complainant was asked to deposit his vehicle. He deposited it on 26.11.1999. Therefore, the complainant is not entitled to recover Rs. 5,140/- (Rupees five thousand one hundred forty). In this affidavit it is only alleged that making the transfer in the name of the company was obligatory on the part of the complainant and this was done in compliance of the order of the learned Forum dated 20.10.1999, therefore, the complainant is not entitled to the expenses of transfer amounting to Rs. 4,000/- (Rupees four thousand).

IT appears that during the proceedings before the learned Forum, the appellant has offered Rs. 84,000/- (Rupees eighty-four thousand) to the complainant. The learned Forum also held that this amount be paid and the vehicle be transferred in favour of the Insurance Company. From the judgment, it is clear that the vehicle was transferred in favour of the company on 28.12.1999 and the payment was made. However, the matter was left upon to be contested and on contesting, it was found that complainant is entitled to interest @ 15% from 1.9.1998 to 19.1.2000, on which date the cheque was given to the complainant. In this appeal, it was alleged that from where the date of 1.9.1998 was found. From the records, it comes out that the accident took place on 31.5.1998, the claim should have been settled within 3 months by 31.8.1998, it is, therefore, the learned Forum which awarded interest from 1.9.1998, which is perfectly justified. Contest was made on the rate of interest. In this case no compensation has been separately given to the complainant and the rate of interest of 15% cannot be said to be on the higher side.

DEFINITELY there was delay in the settlement of the claim and it is due to the interference of the learned Forum that the amount has been paid on 28.12.1999, therefore, definitely the complainant is entitled to interest in view of deficiency of this service. Regarding the claim of Rs. 5,140/- (Rupees five thousand one hundred forty), it is true that this amount has not been claimed in the complaint but these are summary proceedings, after the payment of Rs. 84,000/- (Rupees eighty-four thousand), when the equities were being adjusted by the learned Forum then the question arise regarding the payment of Rs. 5,140/- (Rupees five thousand one hundred forty) as garage charges and the expenses of transfer. The learned Forum finding the nature of the proceedings as summary proceedings did not go into the technicality of the amendment of the complaint but allowed the garage charges of Rs. 5,140/- (Rupees five thousand one hundred forty). Definitely this amount has been paid by the complainant and only because matter was not settled earlier, the vehicle remained stationed in the garage and, therefore, the payment had to be made. This is definitely due to deficiency in service of the Insurance Company. Therefore, the learned Forum was perfectly justified in passing the order of this payment of Rs. 5,140/- (Rupees five thousand one hundred forty). As regards the expenses of transfer of the vehicle, the complainant has been awarded a sum of Rs. 4,000/- (Rupees four thousand) in ad hoc without giving any justification what amount and where it was spent in the transfer of vehicle. No such amount is ever spent. The Forum will not take any notice of miscellaneous expenses made by the complainant as bribe to anybody but it is admitted fact that a sum of Rs. 1,050/- (Rupees one thousand fifty) is to be deposited as fee in the transfer of the vehicle. The complainant is also entitled to this amount only. As regards expenses of litigation, the complainant has unnecessarily been dragged into litigation. She has paid fee to the lawyer, came to the Forum and met expenses of litigation.

WE do not find any infirmity in the order of the learned Forum except that the order for payment of Rs. 4,000/- (Rupees four thousand) as expenses of transfer is to be reduced to Rs. 1,050/- (Rupees one thousand fifty only). With this direction that the appellant should pay Rs. 1,050/- (Rupees one thousand fifty only) towards the transfer of the vehicle. Rest part of the order passed by the learned Forum is to be confirmed. ORDER The appeal is hereby partly allowed and partly dismissed. The order of payment of Rs. 4,000/- (Rupees four thousand) as transfer expenses are reduced to Rs. 1,050/- (Rupees one thousand fifty only). The rest part of the order passed by the learned Forum is hereby confirmed. Cost of this appeal shall be easy. Appeal partly allowed.