IMPORTANT POINT
Cause of action would not arise when claim was awaiting a decision in Insurance Company.

Vinay Kumar, Member—This is the case of a motor vehicle accident that took place, during the operation of the insurance policy, way back in 1987. The surveyor appointed by the Insurance Co. assessed the loss at Rs.2.5 lakhs, according to the Complainant and Rs. 60,000/-, according to the OP/Insurance Co. However, the OP closed the case as one of ‘no claim’, for violation of policy conditions. A complaint was made to the District Forum, Solan. The District Forum allowed the complaint. The OP/ United India Insurance Company, was directed on 11.8.1992 to consider the claim. However, five weeks later, on 18.9.1992, a letter was sent by the OP/Insurance Co. rejecting the claim. The matter was again brought before the District Forum in 1999. The DF ordered the OP/Insurance Co. to indemnify the Complainant to the extent of Rs.1.7 lakhs.

2. The appeal No. 83/2005 against the above order, was dismissed by the State Consumer Disputes Redressal Commission, Simla. Hence, the present Revision Petition before the National Commission. The order of the State Commissioned is assailed in this Revision Petition substantially on three grounds:

a. The consumer complaint was filed before the District Forum, Solan in 1992 nearly 6 years after the truck accident of 1987. Therefore, the complaint is time barred. The Revision Petition also claims that the Company had already repudiated the insurance claim in 1992 and therefore, the complaint of 1998, filed 6 years thereafter, is time barred.

b. The vehicle in question was being plied without having a valid permit, fitness certificate etc. at the time of the accident.

c. The quantum of relief awarded is disproportionately high in comparison to the recommendation of the surveyor.

3. We have examined the records filed before this Commission and heard the counsels for the two parties. Counsel for the RP/United India Insurance Co. argued that the claim was repudiated as all the three essential documents were found to be invalid. This argument was countered by the Counsel for the Respondent/Complainant with the argument that all these were accepted as valid when the policy was issued by the RP in 1986. Therefore, the RP cannot make them a ground for repudiation.

4. On the first ground, we find that the averments of the RP/Insurance Co. before the District and State, forums in the Revision Petition itself and other records of the case, go against its plea. In so far as the time period between the accident in 1987 and claim before the District Forum in 1999 (wrongly mentioned in the RP as 1998) is concerned, it needs to be noted that the District Forum, Simla had issued directions on 11.8.1992 itself. The Complainant was directed to submit the relevant documents to OP/Insurance Co. and the latter was directed to consider the claim, within time limits given by the DF. By their own averment, the RP repudiated the claim on 7.9.1992 and communicated it to the Complainant through their Advocate on 18.9.1992. Hence, the question of any delay between 1987 and 1992 does not arise. The cause of action would not arise when the claim was awaiting a decision in the Co.

5. Coming next to the time between 1992 and 1999, we find that the District Forum has observed in its order of 13.1.2005 that Complainant had produced documentary evidence to show that he had sent the necessary documents in relation to the claim to the Divisional Manager, United India Insurance Co. on 26.8.1992. In the appeal before the State Commission, the Insurance Co. could not produce any evidence to substantiate its claim that the repudiation of the claim was communicated to the Respondent/Complainant. Therefore, the State Commission rightly rejected the letter of repudiation and held that for that reason there is no question of the complaint being time barred.

6. It may be mentioned here that initially the complainant had approached District Forum since his claim had not been decided. The Insurance Company had stated in the reply that the