Back
D. Y. CHANDRACHUD, A. S. BOPANNA
Sharda Associates – Appellant
Versus
United India Insurance Company Ltd. – Respondent
JUDGMENT :
Dhananjaya Y. Chandrachud, J.
1. Leave granted.
2. This appeal arises from a judgment dated 12 July 2019 of the National Consumer Disputes Redressal Commission.,1[“NCDRC”] While exercising its revisional jurisdiction, the NCDRC, by its judgment, reversed concurrent findings of fact which were recorded by the District Consumer Disputes Redressal Forum,2[“District Forum”] and by the State Consumer Disputes Redressal Commission.,3[“SCDRC”].
3. The appellant purchased a JCB Excavator Model 3DX on 25 April 2007. The excavator was insured with the respondent for the period between 5 March 2009 and 4 March 2010 at an Insured Declared Value,4[“IDV”] of Rs. 13.50 lakhs. On 25 May 2009, the excavator was being used on the Shivpuri-Timli Road near Rishikesh in the State of Uttarakhand. A portion of the road gave way, as a result of which the excavator fell into a deep ditch resulting in the death of the operator and helper and the total loss of the excavator. A First Information Report was filed on 26 May 2009. The FIR states that the accident had occurred due to a sudden caving of the road. The surveyor appointed by the insurer conducted a spot survey on 28 May 2009 and reported that
For provisions of Indian Motor Tariff 47 to be applied, it is essential to establish that loss or damage was caused due to overturning and that overturning should arise out of operation as a tool of ....
The applicability of IMT 47 depends on specific conditions, and the court emphasized the limited ambit of the revisional jurisdiction of the NCDRC under the Consumer Protection Act 1986.
The insurer's duty to conduct a reasonable investigation, the liability to indemnify the insured, and the responsibility of the insurance agent in accurately completing insurance applications.
The Insurance Company cannot repudiate a valid claim if it failed to advise against potential policy breaches prior to the incident.
The court emphasized that adequate compensation must account for future earnings and clarified insurer liability based on insurance policy specifics.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
