Validity of the driver's license and the Insurance Company's repudiation of the claim without valid grounds.

Mr. D.D. Bahuguna, Member—This appeal has been filed by New India Assurance Company Limited against the judgment and order dated 28.4.2000 .passed by District Consumer Forum, Dehradun in Complaint Case No. 97/1994.

2. Briefly stated the facts of the case are as follows :

The complainant, Sanjay Bahuguna in order to earn his livelihood, purchased a Maruti Van in 1991 after taking loan from Oriental Bank of Commerce, Dehradun. The said Van bearing Registration No. UP-07A-7581 was insured from the beginning with the appellant. The latest policy for comprehensive insurance bearing No. 31311400075543 was valid from 28.9.1992 to 27.9.1993 and the premium paid on the value of Rs. 1,43,000/-. The complainant in order to ply the taxi, hired the services of licensed driver who had a valid driving licence renewed till 22.4.1994. The said Maruti Van taxi met with an accident on 22.10.1994 while on the way from Dehradun to Haridwar and was completedly damaged. The complainant informed the opposite party and preferred his claim with the Insurance Company within 30 days. All the formalities required by the Insurance Company were completed. The complainant also made several visits to the opposite party at Dehradun and Delhi but with no results. The damaged taxi of the complainant is still lying in the garage and the complainant is paying a monthly rent of Rs. 300/- per month. In spite of the notices given on 6.8.1993 7.10.1993 and 11.11.1993 the opposite party failed to do anything. As a result of the said accident, the complainant has become unemployed and the interest on the bank loan is increasing. The complainant then lodged a claim for Rs. 1,43,000/ -against the Insurance Company along with the interest, rent of garage and the cost of proceedings, aggregating to Rs. 1,84,926/-.

3.The opposite party contested the claim and denied the allegations contained in the complaint. It was admitted that the vehicle was insured with the opposite party as per terms and conditions of the policy. The driver was not an authorised licence holder to drive the Public Services Vehicle. The accident was admitted. The complainant was not entitled to Rs. 1,43,000/- as damages but the total loss assessed as per own statement of the complainant was Rs. 1,00,000/-. As per terms and conditions of the policy, the person driving the vehicle should have an effective driving licence with required endorsement thereon as per provisions of Motor Vehicle Act, 1988 and therefore, the complainant is not entitled to any relief as the driver was net entitled to drive the taxi and his licence was not endorsed for Public Services Vehicle. The claim of the complainant has been rightly repudiated by the Insurance Company.

4. The District Consumer Forum, after examining the stands taken by both the parties, directed the opposite party to pay to the complainant a sum of Rs. 1,43,000/- with simple interest at the rate of 12 per annum with effect from 1.3.1993 till the date of payment. A sum of Rs. 500/- as cost was also awarded to the complainant.

5. Aggrieved against this order of the learned District Consumer Forum, the New India Assurance Company has come in appeal and has challenged the correctness of the order passed by the District Consumer Forum.

6. In the grounds of appeal, it has been stated that the driver of the taxi in question was not holding a valid driving licence and the District Consumer Forum has brushed aside the consent letter dated 7.12.1992 of the complainant through which he had consented to accept a sum of Rs. 1,00,000/- in full and final settlement of his claim as total loss of the vehicle.

7. We have heard the arguments of the learned Counsel of both the parties. The learned Counsel for the appellant has argued that the vehicle in question was a Public Services Vehicle and in the driving licence of the driver, there is no endorsement that he was entitled to drive a Public Service Vehicle. The driver had a licence merely for a light motor vehicle. It has also