IMPORTANT POINT
Repudiation of insurance claim for no just reason amounts to deficiency in service on part of Insurance Co.

Surendra Kumar, Acting President — This is an appeal against the order dated 4.12.1999 passed by the District Forum Chamoli whereby the complaint of the complainant was allowed and the appellant. The New India Assurance Co. Ltd. was directed to pay the insured amount of Rs. 6,000/- and costs of litigation of Rs. 500/-. The insurance company

was further directed to pay the amount within one and a half month and in default of payment to pay interest @ 10%.

2. In brief the facts of the case are that the complainant took a loan of Rs. 6,000/- from opposite party No. 1, State Bank of India, Narayanbagarh for purchase a buffalo. After purchase of the buffalo, the same was got insured with the opposite party No. 2 with the consent of opposite party No. 1 and tag No. NIA 32900/58885 was allotted. It is alleged that on 30.6.1996 the buffalo died due to snake biting. The post­mortem was done the same day. The post-mortem report, tag and other relevant documents were submitted to the bank for sending the same to the insurance company but the claim was not settled, therefore the complainant filed the complaint before the Learned Forum.

3. Before the Learned Forum the insurance company put in appearance through an Advocate but in spite of

sufficient opportunity, did not file any

written statement. The bank filed

written statement and said all the documents were sent to the insurance company and the insurance company intimated on 19.8.1999 that they are reconsidering the matter.

4. The Learned Forum after appreciating the facts of the case allowed the complaint as above, against which order the insurance company has preferred this appeal.

5. We have heard the Learned Counsel for the parties and gone through the records. The insurance and death of the buffalo is admitted. The bank in its written statement has alleged that the insurance company vide letter dated 19.8.1999 informed that they are reconsidering the claim. Letter dated 19.8.1999 is available on record and in para 1 of the letter, it is specifically written that the file has been closed as NO CLAIM on technical grounds but they are under correspondence with their Divisional Office for reconsideration of the claim. There is no case of the insurance company that there was any irregularity in the papers submitted by the complainant for the settlement of claim. What was that technical ground on which the file has been closed as NO CLAIM has also not been disclosed anywhere. Even otherwise no claim can be rejected on technical ground. The statement of the complainant was also recorded before the Learned Forum in which she has supported her contention.

6. It is proved by the evidence available on record that all the necessary documents for the settlement of the claim were submitted by the complainant to the bank and the bank also sent those documents to the insurance company for settlement of the claim. There was no justification for the insurance company to repudiate the claim, therefore there is definitely deficiency in service of the insurance company. The Learned Forum was perfectly justified in allowing the complaint. However the Learned Forum has granted interest @ 10%. In our view interest @ 9% shall be proper and adequate interest. The order under appeal is to be modified accordingly.

ORDER

The appeal is hereby dismissed.

However the rate of interest is hereby reduced from 10% to 9%. Rest

part of the order passed by the Learned Forum is hereby confirmed. Costs shall be easy.

Appeal dismissed.

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