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MADHYA PRADESH STATE CONSUMER DISPUTES REDRESSAL COMMISSION
N.K. Jain, President and Neerja Singh, Member
GAYAWANTI JAUJE - Appellant
Versus
NEW INDIA ASSURANCE CO. LTD. - Respondent
Appeal No. 875 of 2007
Decided on : 05-03-2008
Ms. Usha Malviya and Mr. Rameshwar Sable, Advocates, for the Appellant; Mr. Mahavir Bhatnagar and Ms. Bharti Arora, Advocates, for the Respondent
The main legal point established is that the use of a vehicle for carrying passengers on payment, exceeding its sanctioned capacity, can impact the compensation awarded in a vehicle insurance claim.
Headnote:
Insurance - Vehicle Insurance - Carrying Passengers - Compensation for Damage
Fact of the Case:
The appellant's complaint for compensation for damage to his insured vehicle was dismissed by the Forum below. The vehicle, insured as a private vehicle, was carrying passengers on payment, exceeding its sanctioned capacity at the time of the accident.
Finding of the Court:
The court found that the vehicle was being used for carrying passengers on payment at the time of the accident, based on the FIR and the earliest statement made by a person injured in the accident. The court allowed the appeal in part and directed the respondent-Insurance Company to pay the appellant 75% of the amount of loss assessed by the surveyor, along with interest and costs.
Issues: The main issue was whether the appellant's vehicle, insured as a private vehicle, was being used for carrying passengers on payment at the time of the accident, and if so, the extent of compensation to be awarded.
Ratio Decidendi: The court relied on the FIR and the earliest statement made by a person injured in the accident to infer that the vehicle was being used for carrying passengers on payment at the time of the accident. The court decided to settle the claim on a non-standard basis, awarding 75% of the amount of loss assessed by the surveyor to the appellant.
Final Decision: The court allowed the appeal in part and directed the respondent-Insurance Company to pay the appellant Rs. 52,131 with interest and costs.
ORDER
Heard.
1. This appeal is by complainant whose complaint against respondent-Insurance Company claiming compensation for the damage caused to his insured vehicle, has been dismissed by the Forum below.
2. The claim pertained to a jeep having sitting capacity of 9 + 1. The jeep was insured with the respondent and met with an accident on 26.3.2003 when the insurance cover was in existence. The surveyor appointed by the respondent-Insurance Company assessed the net loss at Rs. 69,508, but the claim of the appellant was repudiated by the respondent-insurer on the ground that the vehicle though registered and insured as a private vehicle, at the relevant time being used for carrying passengers on payment. It was further contended that it carried more passengers than its sanctioned capacity. The Forum below upheld the contention of the respondent and dismissed the complaint of appellant.
3. Coming to the merits of the case, it is seen that in the FIR lodged by a person injured in the said accident soon after the occurrence it was clearly mentioned that some students about ten in number were travelling in the said vehicle on payment of charges. Although subsequently the person who lodged the FIR is resiled from his earlier statement and stated that no charges were paid to the complainant for the said travel. However, the statement made in the FIR being earliest in time when there was no controversy, inspired more confidence. It could, thus, safely be inferred that the vehicle at the time of accident was being used for carrying passengers on payment. That being so, the claim of the appellant deserves to be settled on non-standard basis, i.e. 75% of the amount of loss assessed by the surveyor.
4. We thus allow the appeal as also the complaint of appellant in part and to the extent indicated above. The respondent-Insurance Company is directed to pay to appellant Rs. 52,131 with interest @ 8% p.a. from the date of repudiation i.e. 14.1.2004 till payment. The respondent shall also pay appellant's cost of both the Fora and the same is quantified at Rs. 1,000.
