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CHHATTISGARH STATE CONSUMER DISPUTES
REDRESSAL COMMISSION, RAIPUR
Hon’ble Mr. Justice V.K. Agrawal, President;
Mrs. Veena Misra & Mr. R.S. Awasthi, Members
CHANDA DEVI KOTHARI—Appellant
versus
UNITED INDIA INSURANCE CO. LTD. & ANR.—Respondents
Appeal No. 379 of 2004—Decided on 16.5.2005
Counsel for the Parties :
For the Appellant :Mr. R.K. Bhawnani, Advocate.
For the Respondents:Mr. Shishir Bhandarkar, Advocate.
Headnote:Consumer Protection Act, 1986 - Sections 15 and 2(1)(g) - Appeal by insured for interest on awarded compensation - Accident insurance - Claim - 5-5-2003 Material Documents submitted on 11-9-2003 - Claim settled on 3-2-2004 - Whether entitled to interest ? (Yes) - w.e.f. 2 months after submission of material documents i.e. 8-11-2003 @ 9% p.a. on awarded compensation - Appeal partly allowed.
Held: We have considered the submissions as above. It appears that relevant documents were furnished immediately after 11.9.2003 as appears from respondents letter, marked as annexure- A-8. The other documents demanded did not appear to be the material and were not required for settlement of the complainants claim. In the circumstances, the claim ought to have been settled within a reasonable period of 2 months, i.e. by 8.11.2003. That having not been done, the complainant/ appellant is entitled to interest on the awarded amount from 9.11.2003.(Para 5)
Accordingly, the appeal is partly allowed. The impugned order is modified. It is directed that the respondent/ insurer shall also pay interest @ 9% p.a. on the awarded amount of Rs.5,00,000/-, payable from 9.11.03, besides the costs of the complaint, as awarded by the District Forum.(Para 6)
Result : Appeal partly allowed.
IMPORTANT POINT
Insurance claim is to be settled within two months of submission of material documents otherwise insured is entitled to interest @ 9% on awarded claim amount.
Mr. Justice V.K. Agrawal, President—This appeal under Section 15 of the Consumer Protection Act, 1986, is directed against the order dated 7.8.2004, in Complaint No. 36/2004, by District Consumer Disputes Redressal Forum, Raipur (hereinafter called the ‘District Forum’ for short) whereby the complainant/appellant has been awarded Rs. 5,00,000/- besides Rs. 500/- as cost of the complaint, under Janta Personal Accident Insurance Policy, issued by the respondent/insurer.
2. The only grievance of the complainant/appellant is that interest has not been awarded by the District Forum.
3. In the above context, learned Counsel for appellant submitted that though the complainant preferred claim, after the death of her husband on 5.5.2003 and furnished necessary documents to the respondent/insurer, yet her claim was not settled till 3.2.2004 i.e., the date of filing her complaint. As against this, learned Counsel for the respondent/insurer submitted that the complainant/appellant did not furnish necessary documents for the settlement of her claim despite letters sent to her in the above context. Learned Counsel for respondent/insurer in the above context, drew our attention to their letters dated 18.11.2003 and 11.9.2003, by which the original documents including policy document were demanded. Learned Counsel for complainant/appellant submitted that the complainant had submitted all the documents as has been mentioned by her in her letters dated 23.10.2003 and 11.12.2003 as also other letters. It has been submitted by the learned Counsel for appellant that interest on the amount should have been awarded from 11.9.2003, when the original policy document was submitted by her.
4. We have considered the submissions as above. It appears that relevant documents were furnished immediately after 11.9.2003 as appears from respondent’s letter, marked as Annexure-A-8. The other documents demanded did not appear to be the material and were not required for settlement of the complainant’s claim. In the circumstances, the claim ought to have been settled within a reasonable period of 2 months, i.e., by 8.11.2003. That having not been done, the complainant/appellant is entitled to interest on the awarded amount from 9.11.2003.
5. Accordingly, the appeal is partly allowed. The impugned order is modified. It is directed that the respondent/insurer shall also pay interest @ 9% p.a. on the awarded amount of Rs. 5,00,000/-, payable from 9.11.2003, besides the costs of the complaint, as awarded by the District Forum.
Appeal partly allowed.
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