IMPORTANT POINT
Repudiation of claim on ground that car fitted with CNG Gas Kit could not be insured held unjustified where petitioner company failed to substantiate this plea by putting on record terms and conditions of policy.

Ashok Bhan, President—Petitioner herein who was the complainant before the District Consumer Disputes Redressal Forum, Amritsar (hereinafter referred to as ‘the District Forum’ for short) has filed the present Revision Petition.

2. Briefly stated, the facts of the case are:

Respondent/complainant had filed the complaint before the District Forum alleging that he was the owner of Maruti Car bearing Registration No.PB-02-AC-3363, which was insured with the petitioner. The validity of the policy was from 21.11.2001 to 20.11.2002. The vehicle met with an accident on 29.09.2002. Respondent incurred an expenditure of Rs.1,17,391.63 on repair of the vehicle and a sum of Rs.1,500/- as towing charges. Thus, in total, the respondent spent a sum of Rs.1,18,891/-. He submitted his claim to the petitioner—Insurance Company which was repudiated aggrieved against which the respondent filed the complaint before the District Forum.

3. On being noticed, petitioner filed its reply. It admitted the factum of insurance of car and occurrence of accident. Petitioner took the stand that the claim of the respondent could not be entertained as the car was fitted with CNG Gas those originally specified by the manufacturer”, contends that the vehicle in dispute could not be insured as the same was fitted with CNG Gas Kit. This question would arise only if the petitioner was able to prove that the vehicle was originally fitted with a petrol/diesel engine but later on the respondent had altered it to CNG Gas Kit. No such plea was taken by the petitioner in its written statement or before the District Forum or the State Commission. In the absence of a plea that the respondent had changed the vehicle from petrol/diesel engine to CNG Gas Kit, the argument raised before us has to be rejected.

4. The District Forum accepted the complaint. It came to the conclusion that no rule/regulation of the Insurance Company was brought on record to show that the petitioner was justified in repudiating the claim of the respondent on the ground that the vehicle was fitted with the CNG Gas Kit. The District Forum directed the petitioner to pay a sum of Rs.1,18,891/- within a period of 3 months and, on failure to do so, awarded amount was to carry interest @ 9% per annum from 29.09.2002 till the date of payment. Rs.1,000/- was awarded as costs.

5. Aggrieved against the Order passed by the District Forum, petitioner filed the Appeal before the State Consumer Disputes Redressal Commission, Chandigarh (hereinafter referred to as ‘the State Commission’ for short) .State Commission dismissed the Appeal for the same reasons as had been recorded by the District Forum while allowing the complaint filed by the respondent. It held that the petitioner had failed to put on record the terms and conditions of policy showing that the vehicle fitted with CNG Gas Kit could not be insured without the permission of the competent authority.

6. Petitioner has not put on record the letter by which the claim of the respondent was repudiated. The only submission which was advanced before the District Forum and before the State Commission was that a car fitted with CNG Gas Kit could not be insured, as the same was not permissible under the rules of the Insurance Company. The petitioner has failed to substantiate this plea by putting on record the terms and conditions of policy or any provision of the Act or rule to show that the car fitted with CNG Gas Kit could not be insured. We agree with the finding recorded by the Foras below.

7. Counsel for the petitioner relying upon Section 52 of the Motor Vehicles Act, 1988, which provides that “no owner of the motor vehicle shall so alter the vehicle that the particulars contained in the certificate of registration are at variance with Kit, which was not permissible under the rules of the Insurance Company.

8. Reliance upon the subsequent Circular No.SRT-11011/15/99-MVL dated 12.07.2002 issued by Government of India, Ministry of Road Transport and Hi