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UTTAR PRADESH STATE CONSUMER DISPUTES
REDRESSAL COMMISSION, LUCKNOW
Hon’ble Mrs. Rachna, Presiding
Member & Mr. Roop Singh, Member
MADHU SOOD—Complainant
versus
ORIENTAL INSURANCE COMPANY LIMITED & ANR.—Opposite Parties
Complaint Case No. 62/SC of 1999—Decided on 19.8.2004
Counsel for the Parties :
For the Complainant :Mr. Deepak Shukla, Advocate.
For the Opposite Parties : None.
The liability of the insurance company starts from the date when the cover note is issued to the insured, and the applicable interest rate for compensation claims.
Headnote:
Consumer Protection Act - Insurance Claim - 1986, Section 17 - [1986, Section 17] - The court discussed the timing of the fire incident in relation to the insurance coverage and the liability of the insurance company. It referenced the judgments of Hon’ble High Court of Allahabad and the Supreme Court to determine the liability of the insurance company and the applicable interest rate. The court partly allowed the complaint, directing the opposite parties to pay Rs. 6,50,000 for the loss of the vehicle with 9% per annum interest from the date of repudiation of the claim till the date of actual payment.
Fact of the Case:
The complainant's vehicle was insured, and a fire incident occurred. The insurance claim was repudiated based on the timing of the fire. The complainant sought directions for payment from the opposite parties.
Finding of the Court:
The court found that the fire took place after the insurance was effected, and the complainant's claim for Rs. 8 lacs was not supported by the evidence. It determined the liability of the insurance company and the applicable interest rate based on legal principles.
Issues: Timing of the fire incident in relation to insurance coverage, liability of the insurance company, and the applicable interest rate.
Ratio Decidendi: The court relied on the timing of the fire incident and the judgments of Hon’ble High Court of Allahabad and the Supreme Court to determine the liability of the insurance company and the applicable interest rate.
Final Decision: The complaint was partly allowed, directing the opposite parties to pay Rs. 6,50,000 for the loss of the vehicle with 9% per annum interest from the date of repudiation of the claim till the date of actual payment.
Mr. Roop Singh, Member—This is a complaint under Section 17 of the Consumer Protection Act, 1986 (hereinafter called the ‘Act’) praying for directions to be issued to the opposite parties to pay Rs. 8 lacs along with 18% per annum interest.
2. Briefly stated the facts of the case are that the complainant purchased a vehicle (tanker) after taking loan from Canara Bank, Civil Lines Branch, Jhansi on 20.3.1996, the registration of which is MP 17 C1494. The complainant has all the valid documents. It was further stated that said vehicle was being used for carrying oil to different States and was engaged in the business of transporting the oil to different places. The complainant got the vehicle insured with Oriental Insurance Company Limited for the period 20.6.1998 to 19.6.1999 and accordingly a Cover Note No. 513641 was issued. Further on 20.6.1998 the complainant’s tanker started from Mathura for Jhansi at 11.00 a.m. and the vehicle reached the Sales Tax Barrier, Ambabai and at the Sales Tax barrier the entry to the effect was made. At 11.20 a.m. the tanker reached the Bundelkhand Degree College which is about 14 kms from the Sales Tax Barrier and at the Bundelkhand Degree College the vehicle was inspected by the Insurance Agent Mr. Deepak and after inspecting the tanker for 5 minutes the tanker was allowed to proceed to its destination and started preparing the cover note after inspecting the vehicle at 11.30 a.m. on the same day the tanker of the complainant, it was alleged, reached Haji Sons Pump which is 3 kms. from the petrol pump where fire took place and the vehicle of the complainant was burnt. Information to this effect was made to the police station and the fire brigade reached the sport and made efforts to control the fire. On 22.6.1998 the complainant lodged an F.I.R.
3. The complainant submitted an application on 23.6.1998 to the Divisional Manager, Oriental Insurance Company Ltd. along with original copy of the F.I.R. on 10.7.1998 the employees of the Oriental Insurance Company Ltd. took the statement of the complainant. Further on 23.7.1998 the Surveyor and Loss Assessor of the opposite parties wrote to the complainant and asked her to furnish certain documents, which was done by the complainant. However, the claim of the complainant was not satisfied. On 10.11.1998 the complainant sent a legal notice to the opposite parties asking them to settle the claim of the complainant. Finally a complaint was filed by the complainant on 10.12.1998 on the wrong advice in the District Consumer Forum, Jhansi which was not maintainable on pecuniary jurisdiction. On 23.2.1999 the complainant withdrew the complaint with a view to file it before the State Commission.
4. The claim of the complainant has been rejected by the opposite parties on 15.2.1999. Then the complaint has been filed.
5. Notice was issued to the opposite parties on 15.5.2000 but the opposite parties have not filed by written statement. Several opportunities have been provided to the opposite parties to file written statement and on 9.1.2004 the Commission passed an order as under :
“Inspite of time having been granted to Sri B.P. Dubey on several last occasions followed by stop order to file the same within two months passed on 31.10.2003, no written statement has been filed.
Mr. Deepak Shukla is present and opposses strongly any further adjournment. Objection is sustained.
Let ex parte evidence be filed by complainant within one month. Matter be listed for ex parte hearing in April 2004."
6. Complainant has filed affidavit and also a supplementary affidavit along with 11 annexures and three annexures respectively.
7. The learned Counsel for the complainant Mr. Deepak Shukla has been heard at length and perused the records.
8. It is an admitted fact that the vehicle in question was insured with the opposite party which was valid from 11.30 a.m. on 20.6.1998 to 19.6.1999 and the premium of Rs. 20,813/- was paid. It is also admitted by the Insurance Company that the
