The central legal point established in the judgment is the interpretation of the insurance policy terms regarding the liability of the Insurance Company in the assessment of loss for a total loss/constructive total loss of the insured vehicle.

ORDER

S.C. Vyas, President (Oral) This appeal is directed against order dated 18.7.2012 of District Consumer Disputes Redressal Forum, Bastar at Jagdalpur (C.G.) (hereinafter called "District Forum" for short), in Complaint Case No. 07/2011, whereby the appellant/Insurance Company, has been directed to pay Rs. 4,51,200 to the respondent/complainant on account of total loss of the insured vehicle in an accident, along with interest @ 7.50% p.a. w.e.f. date of filing of the complaint i.e. 21.4.2011 till date of payment, within a period of one month from the date of order. It has further been directed to pay Rs. 10,000 as cost of litigation and Counsel's fees Rs. 5,000

2. Only challenge to the impugned order by the appellant Insurance Company is in respect of assessment of loss. In this regard, the report of Surveyor, Er. Bipin Bihari Patra, has been brought on record by the Insurance Company. Er. Bipin Bihari Patra has inspected the questioned vehicle and has assessed the loss. As per his assessment on repairing basis liability of the Insurance Company may be of Rs. 4,60,000, whereas on total loss basis, it has been assessed at Rs. 4,79,000 and on salvage loss basis, it has been assessed at Rs. 3,99,000

3. Learned Counsel for the appellant submitted that wreck value has been assessed by the Surveyor at Rs. 80,000 and same amount was deducted from I.D.V. of the vehicle. Further deduction was that of 1,000 towards compulsory excess, as per terms of the insurance policy and therefore liability of the Insurance Company at the most can be for payment of Rs. 3,99,000.

4. The terms of the insurance policy has also been brought on record by the Insurance Company and it has been specified in Sub-clause (a) of Condition No. 3 that for total loss/constructive total loss of the vehicle the Insured's Declared Value (IDV) of the vehicle (including accessories thereon) as specified in the Schedule less than the value of the wreck can be the liability of the Insurance Company. Thus, it was condition agreed between the parties that liability of the Insurance Company can only be up to payment of the IDV less than wreck value and in present case wreck value has been assessed at Rs. 80,000. Therefore, we deem it appropriate to hold that liability of the Insurance Company after deducting wreck value and compulsory excess from IDV is only to the extent of Rs. 3,99,000.

5. In view of aforesaid, the appeal succeeds in part and is allowed. The impugned order passed by the District Forum, is modified only to the extent that at the place of Rs. 4,51,200, the amount of Rs. 3,99,000 will be substituted. Remaining part of the impugned order shall remain as it is. No order as to the cost of this appeal