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UNION TERRITORY CONSUMER DISPUTES
REDRESSAL COMMISSION, CHANDIGARH
Hon’ble Mr. Justice K.K. Srivastava, President;
Maj. Gen. S.P. Kapoor & Mrs. Devinderjit Dhatt, Members
COL NIRMAL SINGH—Appellant
versus
NEW INDIA ASSURANCE COMPANY & ANR.—Respondents
Appeal Case No. 50 of 2005—Decided on 31.5.2005
Counsel for the Parties :
For the Appellant :Col. Mohan Singh Ghuman, Advocate.
For the Respondent No. 1:Mr. Vinod Chaudhari, Advocate.
For the Respondent No. 2: Authorised Representative.
The liability of the insurance company and the authorized garage for alleged defects in the car is determined by the terms and conditions of the insurance policy and relevant case law.
Headnote:
Insurance - Car Insurance - [Indica car, Insurance Claim, Power Steering Assembly] - [Section 1 of the standard form for private car package policy, Dr. J.J. Merchant v. Srinath Chaturvedi, III (2002) CPJ 8 (SC)=2002 CTJ 757] - The court discussed the admissibility of no claim bonus, depreciation charges, and the damage caused to the power steering assembly. It referred to the terms and conditions of the insurance policy and relevant case law to determine the liability of the insurance company and the authorized garage for the alleged defects in the car.
Fact of the Case:
The complainant's car was insured and met with an accident. After repairs, the complainant alleged defects in the power steering assembly and claimed a sum of Rs. 1,98,899, including replacement costs, legal expenses, depreciation charges, and mental agony. The District Forum dismissed the complaint, finding no deficiency in service by the insurance company or the authorized garage.
Finding of the Court:
The court found that the complainant failed to prove any deficiency in service by the insurance company or the authorized garage and dismissed the complaint.
Issues: Admissibility of no claim bonus, depreciation charges, and damage to the power steering assembly.
Ratio Decidendi: The court relied on the terms and conditions of the insurance policy and relevant case law to determine the liability of the insurance company and the authorized garage for the alleged defects in the car.
Final Decision: The appeal was dismissed, and the parties were left to bear their own costs.
Mr. Justice K.K. Srivastava, President—This is an appeal filed by the complainant Col. Nirmal Singh (Retd.) against judgment and order dated 3.12.2004 passed by District Consumer Disputes Redressal Forum-II, U.T., Chandigarh (for short hereinafter to be referred as District Forum) vide which Complaint Case No. 312 of 2004 was dismissed by leaving the parties to bear their own costs.
2. The appellant got his Indica car bearing registration No. CH03-H-6720 insured with New India Assurance Company (for short hereinafter to be referred as Assurance Company) respondent No. 1 for the period from 27.2.2003 to 26.2.2004 vide policy No. 31/02/7883. The said car met with an accident which took place on 27.8.2003. The car was sent for repairs to respondent No. 2-M/s. Surendra Autos Pvt. Ltd., 114, Industrial Area, Phase I, Panchkula which was the authorised garage of the Assurance Company. After the repairs of the car as per damage assessed by respondent No. 2- M/s. Surendera Autos Pvt. Ltd., which was approved by the Surveyor of the Assurance Company, the repaired car was inspected by the authorised representative of the Assurance Company. The total costs of repair was of a sum of Rs. 76,385, which was paid by the complainant to respondent No. 2 - M/s. Surendra Autos Pvt. Ltd. on 3.10.2003 for taking the delivery of the car.
3. It is not disputed that the Assurance Company settled the claim vide cheque dated 11.12.2003 issued for an amount of Rs. 64,595, which included supplementary claim and toeing charges. The appellant/complainant has alleged that at the time of taking delivery of the repaired car on 3.10.2003, he detected some oil leakage and brought this fact to the notice of respondent No. 2 - M/s. Surendera Autos Pvt. Ltd. The respondent No. 2 found the source of leakage from power steering assembly. Consequently, the power steering assembly was dismantled to rectify the defect when it was noticed that there was a hair crack on the body of the power steering assembly and also the pressure of the pipeline had cracked at the intake place of the mounting and the pressure pipeline resulting in leakage. The said defect was attempted to be repaired by respondent No. 2 - M/s. Surendera Autos Pvt. Ltd. but it could not do so because the broken pipeline could not be removed from the body of mounting. It was further alleged that in the process of removal of the broken pipeline, the internal threading of the body of the assembly got damaged. Thereafter, the respondent No. 2 - M/s. Surendera Autos Pvt. Ltd. told the complainant that power steering assembly would have to be changed and a supplementary claim should be made to the Assurance Company as the said leakage was due to the direct result of the accident. In the meantime, the car was fitted with a manual steering assembly to make it motorable. The complainant brought this fact to the notice of Assurance Company on 7.10.2003 and prayed for releasing supplementary claim, which was rejected by Shri Kuldeep Singh, Surveyor after inspecting damaged part stating that the damage to the power steering assembly was not attributable to the accident and that it was clear case of mishandling of job by respondent No. 2-M/s. Surendera Autos Pvt. Ltd. the complainant again approached the Assurance Company for reviewing the decision of the Surveyor and it was pointed out that as per the technical experts appointed by the manufacturers, the contention of the Surveyor was not correct because a crack in the body of the power steering assembly and damage to the pressure pipeline could not take place due to normal usage of the assembly and that this damage was only possible due to a heavy impact of the kind that the car undertook as a result of the accident.
4. The complainant got the defective parts replaced, pending the finalization of the matter regarding suppelmentary claim by the Assurance Company by paying a sum of Rs. 16,615 as full cost of the power steering assembly to respondent No. 2- M/s.
