Strict adherence to the terms and conditions of the insurance policy is essential to determine the extent of liability of the insurer. The insured must comply with the statutory limitations or terms of the policy expressly set out therein.

Prathiba M. Singh, J.

1. The present appeal arises out of judgment dated 19th September, 2016 by which the suit of the Respondent/Plaintiff (hereinafter, ‘Plaintiff’) was decreed for a sum of Rs.7 Lakhs along with the interest @ 9% per annum from the date of accident i.e. on 4th March 2011 till realisation.

2. Plaintiff is in the business of running LPG carriers. An insurance policy was obtained by the Plaintiff for the LPG fuel container vehicle bearing No.HR-38-P-0231 from the Appellant/Defendant (hereinafter, ‘Insurance Company’). Insurance policy bearing no.271500/48/2011/306 was issued which was valid from 22nd April 2010 to 21st April 2011. The charges for the said insurance contract of Rs.3042/- was paid and as per the contract the fuel inside the closed body of the carrier was insured.

3. It is claimed that on 4th March 2011, the LPG carrier which was refilled with LPG from Bharat Petroleum Corporation Limited, (hereinafter, 'BPCL'), Lucknow met with an accident. FIR No.58/2011 under Sections 279/427 of the Indian Penal Code, 1860 was registered at PS Tundla, District, Firozabad. According to the Plaintiff, it suffered a loss to the tune of Rs.8.45 Lakhs which was claimed/adjusted by BPCL towards the loss of fuel.

4. It is the Plaintiff's case that it raised a claim with the Insurance Company on 11th March, 2011. Subsequently, notice dated 5th May, 2012 was issued. The notice was replied by a printed standard reply, on 25th May 2012, that the claim of the Plaintiff was being processed. However, since the claim was not allowed, the Plaintiff approached the Consumer Dispute Redressal Forum. The complaint before the consumer forum was dismissed on 5th July 2012. The Plaintiff issued another letter dated 4th August 2012. However, the amount was not released. Plaintiff, thus, filed a suit for recovery of Rs.8,45,000/- along with the interest @ 24% per annum.

5. The main plank of the arguments of the Insurance Company is that the Plaintiff never lodged its claim with the Insurance Company and that the so called letter dated 11th March, 2011 was manipulated. The Insurance Company also submitted that the maximum payable amount is Rs.7 Lakhs.

6. The following issues were framed by the Trial Court on 16th May 2013.

“1. Whether the plaintiff is entitled for a direction to the defendant to pay a sum of Rs.8,45,000/- to him for the losses suffered due to the accident in terms of policy agreement, inconvenience and harassment along with cost of litigation and interest at the rate of 24% pa? OPP

2. Whether the suit of the plaintiff is not maintainable in the present form? OPD

3. Whether the suit of the plaintiff is devoid of any cause of action and as such the same is liable to be dismissed? OPD

4. Whether the present suit has not been signed, verified and instituted by a duly authorized person? OPD

5. Relief, if any.”

7. Plaintiff led evidence of Shri Subodh Chand Gupta who was PW-1. He is the proprietor of the Plaintiff. He exhibited the following documents.

- Ex.PW-1/DX-1 - Carrier legal liability policy schedule

- Ex.PW-1/A - Certified copy of the FIR dated 4th March 2011.

- Ex.PW-1/B - Office copy of the letter dated 11th March 2011 bearing original seal of the Insurance Company showing receipt of letter dated 11th March 2011.

- Ex.PW-1/C & Ex.PW-1/D - Original reply dated 25th May 2012 by the Insurance Company along with original envelope.

- Ex.PW-1/E - Office copy of letter dated 4th August 2012 issued by learned counsel for Plaintiff.

- Ex.PW-1/F & Ex.PW-1/G - Speed post receipt showing dispatch and receipt of courier agency.

The Insurance Company led the evidence of the Assistant Manager who exhibited the original policy documents.

8. After examining the evidence on record, the Trial Court held that there is no basis to hold that the letter dated 11th March 2011 was forged and fabricated. However, the Trial Court limited the liability of the Insurance Company to Rs.7 Lakhs and passed a decree for the said amount with interest @ 9% per