The liability of the insurance company to pay the assessed amount and the determination of the rate of interest were the central legal points established in the judgment.

Mr. Justice D.P.S. Choudhary, President—O.P. (New India Assurance Company) is the appellant who has preferred the appeal against the order dated 6.9.1995 passed by District Forum, Purnea in Complaint Case No. 102/1993 by which the Forum has directed the appellant to pay Rs. 52,316/- with interest @ 18% per annum till the date of payment and further allowed a compensation of Rs. 500/- for mental agony.

2. The appeal was heard ex parte, as the respondent did not appear in spite of the notice.

3. The brief fact of the case is that complainant filed the case stating therein that he is owner of Tata Delux Bus registration No. BHK-9448 which was insured with the appellant-O.P. for the period 3.6.1992 to 2.6.1993. The aforesaid bus met with an accident in the night of 1.10.1992 near Jalalgarh Police Station and station diary entry No. 6 dated 1.10.1992 was entered in the Police Station on the information given by the local Choukidar. On 8.10.1992 the appellant was informed about the accident and then the complainant filled up claim form and filed before the Insurance Company. A Surveyor was appointed by the Insurance Company who went to the spot, investigated the vehicle in question, and submitted his assessment report dated 16.10.1992. The Surveyor estimated the loss for Rs. 54,600/- only. The complainant on 12.10.1992 submitted the estimated cost of repair. The Insurance Company did not accept the Surveyor’s report as it was found to be inflated and having some illegality. The report was submitted without any notice or knowledge to the appellant-Insurance Company and a supplementary estimate of Rs. 3,000/- was included in the report. On this ground, the appellant did not accept the Surveyor’s report. The contention of the appellant was that cash memo and estimated cost of repairing filed on behalf of the complainant are not genuine because they have not been filed along with affidavit. It is further case of the appellant that Insurance Company carefully considered the details of the papers concerning the expenditure and assessed the loss to Rs. 36,613/- only. The complainant did not submit the loss voucher after signature in spite of reminders. Therefore, there was no deficiency and laches on the part of the Insurance Company. The complainant did not accept the settled amount and made a claim of Rs. 64,600/-, which was not acceptable to the Insurance Company.

4. The District Forum after considering the case of both the parties accepted the Surveyor’s report and directed the Insurance Company for payment of Rs. 52,316/- and also found that there was delay on the part of the Insurance Company in making payment, hence allowed interest @ 18% and the compensation of Rs. 500/- as detailed above.

5. The main contention of the appellant before us is that the District Forum has not assigned any valid reason for accepting the Surveyor’s report and without considering the objection of the appellant-Insurance Company directed the Insurance Company to pay the amount as assessed by the Surveyor. The Insurance Company has considered the claim of the complainant in detail and has offered the amount of Rs. 36,613/-, which was not accepted by the insured, which the Insurance Company is still ready to pay. Therefore, there was no deficiency on the part of the Insurance Company and award of interest @ 18% is arbitrary and which should not have been allowed against the Insurance Company.

6. We have gone through the impugned order of the District Forum and the memo of appeal and also considered the submissions made on behalf of the appellant. There is no dispute with regard to any fact in the matter. The complainant’s vehicle was insured with the appellant and during the period of insurance in the night of 1.10.1992 the bus met with an accident. The local police was informed and Insurance Company was informed on 8.10.1992. The complainant filled up the claim form and sent it to the Insurance Company with the relevant papers. A Surveyor was appointed by