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UTTARANCHAL STATE CONSUMER DISPUTES
REDRESSAL COMMISSION, DEHRADUN
Honble Mr. Justice K.D. Shahi, Chairman; Mr. Surendra Kumar &
Ms. Luxmi Singh, Members
NATIONAL INSURANCE CO. LTD.—Appellant
versus
MADHVA NAND—Respondent
Misc. Appeal No.78 of 2002—Decided on 30.5.2003
Insurance Company - Insurance Claim - [Motor Vehicles Act, 1988, Section 146(1)] - [Insurance Act, 1938, Section 64VB] - [Summary: The court discussed the provisions of the Motor Vehicles Act, 1988, Section 146(1) which mandates the compulsory insurance of motor vehicles against third party risks and the Insurance Act, 1938, Section 64VB which deals with the settlement of claims. The court emphasized that the deduction of 25% from the claim amount was not justified as the accident did not occur due to the presence of extra passengers, and the agreement between the parties for settlement was binding. The court also referred to relevant case laws to support its decision.]
Fact of the Case:
The complainant's truck was insured for Rs. 5,00,000 and was totally damaged in an accident. The Insurance Company settled the claim for Rs. 1,39,000, alleging that the complainant had agreed to this amount. The complainant disputed the settlement and filed a case.
Finding of the Court:
The court found that the Insurance Company's deduction of 25% from the claim amount was not justified as the accident did not occur due to the presence of extra passengers. The court also held that the agreement between the parties for settlement was binding, and the Insurance Company was not entitled to deduct any amount beyond the agreed sum.
Issues: Dispute over the settlement amount, validity of the deduction of 25% from the claim, and the binding nature of the settlement agreement.
Ratio Decidendi: The court's decision was based on the lack of justification for the deduction, the binding nature of the settlement agreement, and the provisions of relevant laws and case laws.
Final Decision: The appeal by the Insurance Company was dismissed, and the court held that the Insurance Company was not entitled to deduct any amount beyond the agreed settlement sum.
Mr. Justice K.D. Shahi, Chairman—This is an appeal by the Insurance Company against the judgment and order dated 10.10.2002 passed by the District Forum, Nainital whereby a sum of Rs. 46,000/- and Rs. 5,000/- as compensation and Rs. 1,500/- for legal expenses along with interest was allowed in favour of the complainant Madhva Nand.
2. The brief facts of the case are that the complainant Madhva Nand is the owner of a truck. It was insured for Rs. 5,00,000/- for a period from 12.12.1999 to 11.12.2000. On 18.10.2000 it fell in a Khad and was totally damaged. Information was given to the Insurance Company on 19.10.2000 who appointed a Surveyor. The Surveyor found the truck totally damaged and directed to tow it to Haldwani. The complainant brought the salvage to Haldwani at expenses of Rs. 10,000/-. Shri D.K. Saxena, Surveyor was appointed to assess the loss. He also found the truck totally damaged and assessed the loss for Rs. 5,00,000/-. Thereafter the Insurance Company appointed a third Surveyor Shri P.K. Agarwal who declared the truck totally damaged and assess the price of the salvage to Rs. 1,50,000/-. After deducting this amount he recommeded for payment of Rs. 3,50,000/- as compensation. The complainant ran to the office of the Insurance Company for a number of times and he was promised payment. On 22.6.2001, he was called upon in the office and his signatures were taken on some printed papers. The complainant was given a cheque of Rs. 1,39,000/-. It was said that the amount of salvage is Rs. 1,50,000/-. His claim has been settled at Rs. 2,89,000/-. The Insurance Company gave a letter on 22.6.2001 and told “Take it to the house and read it with comforts.” The complainant has taken loan from bank. Interest was increasing day by day and on the pressure of the officers of the Company, he took the cheque. Then and there he informed the officers of the Company that his loss is of Rs. 5,00,000/-. If Rs. 1,50,000/- is deducted, then he is entitled to Rs. 3,50,000/-. The officer told that it shall be referred to the higher authorities and then payment shall be made. He was asked to take the cheque as given and when the higher authorities will allow, he shall get the rest of the claim. Again the claimant went to the office of the Insurance Company on 26.6.2001 and 20.7.2001 and asked for the balance but he was not paid. Rather he was informed that his claim has been settled for Rs. 1,39,000/- and if he is dis-satisfied, he may go to the Court.
3. The Insurance Company contested the case, admitted the accident. It further admitted that on 19.10.2000, an information was given to it. It was said that the claim of the complainant has been settled within three months. Therefore, he has got no right to file a case. It is alleged that on 25.1.2001 the complainant gave a letter that he is ready to settle the claim at Rs. 3,35,000/- and after keeping the damaged vehicle with himself, he agreed to take back Rs. 1,85,000/-. It is alleged that there were illegal passengers in the truck at the time of the accident. Therefore, after deducting 25% the claim was rightly settled. It is further said that it was settled with the consent of the complainant and he has taken the cheque in full and final satisfaction on 22.6.2001 and issued a discharge voucher therefor. It is said that towing charges of Rs. 2,500/- has also been paid to the complainant. The learned Forum took the evidence of the parties and came to the conclusion that in view of the decision of the Hon’ble Supreme Court, if the accident did not take place due to sitting of extra passengers, it has got no effect and therefore, deduction of 25% is not justified. The deduction of 25% is Rs. 46,000/- on which amount, the Forum passed the decree in favour of the complainant. Regarding the insurance discharge voucher and full and final settlement in agreement with the parties, the learned Forum was of the view that the complainant has agreed for a sum of Rs. 1,85,000/- and not for any de
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