Vinay Kumar, Member—The facts on record are that the Complainant had insured his TATA-407 vehicle with the respondent in January 2001 for a sum of Rs.2 lakhs. This vehicle met with an accident in May 2001. The estimates for repairs showed a requirement of Rs.1,35,370/- which was assessed by the surveyor appointed by the insurance company. The surveyor recommended Rs.68,610/- as the net payable amount. But, the National Insurance Co. sent him an offer for only Rs.47,600/-, in settlement of the claim on ‘non-standard basis’, on the ground that at the time of the accident of this vehicle, there were extra passengers sitting in it. When this offer was not accepted by the complainant, the Insurance Co closed it as a ‘no claim’ case.

2. The District Forum, Himmat Nagar Sabarkantha, considered the claim of Rs. 1,23,000/- made by the Complainant and directed the Insurance Co. to pay the total repair bill of Rs. 98,860/-, with 6% interest and compensation of Rs. 2,000/-. The District Forum held that medical reports of only 4 persons were presented and that the Insurance Co was not able to prove that the vehicle was illegally carrying more passengers, at the time of the accident.

3. In