The insurer is liable to pay godown charges for the storage of the salvage of the insured car once the accident is reported.

Miss S. Brar, Member—Briefly the facts of the case are that the complainant is a registered Public Limited Company and an insurance policy holder in respect of his car NE 118 91 model. The said car met with an accident on 11.8.91 and the complainant lodged a claim with respondent company. The insurance policy was valid upto 5.7.92. The Surveyor surveyed the car on 27.8.91. Complainant accepted the claim for Rs. 2 lakhs against his claim of Rs. 2.20 lakhs on 1.11.91 as car was declared total loss.

2. The Regional Office of the respondent company wrote to the Divisional Office on 6.2.92 sanctioning the settlement of the claim for Rs. 2 lakhs subject to depositing the original policy and the salvage in the respondent’s godown in the presence of the surveyor. Salvage was deposited in the insurance company’s godown on 25.2.92 against salvage collection memo, since the claim was not paid. Complainant gave a legal notice to the respondent on 3.3.92 for releasing the claim amount at the earliest.

3. Surveyor examined the salvage at the godown of the respondent on 26.2.92 and submitted his report on 27.2.92 indicating the value of the missing parts namely battery at Rs. 4,405/-. In the report there was also mention of the missing A.C. Unit alongwith fittings but he did not value the A.C. Unit. However, later on 30.3.92 assessed the depreciated value of the complete A.C. Unit at Rs. 18,000/-. On the basis of the report the Divisional Office wrote and sought advice from the Regional Office about the amount to be paid against the claim. In response they were advised to deduct the value of the missing parts from the approved amount of Rs. 2,00,000/-. The respondent advised the insured on 10.4.92 that a sum of Rs. 22,405/- is to be deducted on account of missing parts and that the net amount worked out to Rs. 1,77,595/- and enclosed a voucher for the same to be returned duly signed so that payment could be released. In response the complainant asked for the accepted claim amount and to keep the dispute about missing items alive and further for the first time made a claim to pay Rs. 20,000/- towards godown charges paid for the storage of the salvage and also claimed interest on the payable amount at the rate of 18% beyond the three months period.

4. The respondents claimed that there was no dely on their part in the payment of the claim and that the insured had not complied with requirement of depositing the salvage as also not agreeing to the deduction on account of the value of the missing parts. The respondents claimed that they were justified in making the deduction. They further stated that the balance amount was offered to the insured which was refused. It was further contended that per chance it came to their knowledge through the godown keeper that the A.C. Unit was fitted in the salvage that is why it was not included in the salvage memo by him. On re-examination the surveyor confirmed the existence of the A.C. Unit and the Regional Office was informed of the mistake.

5. The respondent further claimed that they have no liability to pay the godown charges to Prem Nath Motors is not a document showing that Prem Nath Motors claimed godown charges in the sum of Rs. 19,700/- and that the same was paid by the complainant. It was further stressed that at no point of time insurance company was approached to keep the salvage. Complainant could not produce any evidence to support their claim but claimed that once accident is reported the salvage becomes the property of the insurer; therefore they were liable to pay the godown charges. In our view after considering the arguments advanced by both parties we are inclined to accept the claim of the complainant for payment of godown charges by respondent. The claim is exhorbitant. The complainant has not proved that he paid godown charges to the respondent, M/s. Prem Nath Motors. Consequently, we award Rs. 50/- per day as godown charges to be paid to the complainant w.e.f. 27.9.91 to 25.2.92.

6. A