JUDGMENT

HARJIT SINGH BEDI, J. - Leave granted.

2. This appeal by way of special leave arises out of the following facts:

On 4th January, 2000, the appellant herein purchased a new Tata Sumo vehicle for a sum of Rs. 4,30,000/-. The vehicle was comprehensively insured on 19th January, 2000 with the Oriental Insurance Company (hereinafter referred to as `the Company ) on its purchase value of Rs. 4,30,000/- and a premium of Rs. 10,436/- was paid. This policy expired on 18th January, 2001 and on the very next day the said policy was renewed for a year by the company assessing the value of the vehicle at Rs.3,59,000/-. This policy expired on 18th January, 2002 but was again renewed on 13th February, 2002 up to 12th March, 2003 on a premium of Rs. 8498/- on the value assessed by the Company at Rs.3,54,000/-

The vehicle met with an accident on 10th September, 2002 on which the appellant informed the company as to what had transpired. The vehicle was removed to Chambal Motors, Kota, Rajasthan, an authorized service station of Tata Motors, for repair. Chambal Motors submitted an estimate of Rs.3,37,246.59/-for the repair of the vehicle. The appellant then submitted a claim for Rs. 3,37,246.5