IMPORTANT POINTS
Insurer liability - The insurer liability is limited to external damage due the accident as determined by the surveyor. The damage to the engine, however, was consequent to specific acts of negligence on the part of the Complainant.

ORDER

AVM J. Rajendra, AVSM, VSM (Retd.), Member—The present First Appeal has been filed against the Order dated 25.10.2018 passed by the State Consumer Disputes Redressal Commission, Punjab, Chandigarh (hereinafter to be referred as “the State Commission”), in Consumer Complaint No. 616 of 2018, wherein the Complaint filed by the Complainant (Respondent herein) was allowed.

2. There was delay of 57 days in filing the present appeal. For the reasons stated in IA/3369/2019 the delay is condoned.

3. It is the case of the Complainant that he is the owner of vehicle Mercedes Benz GL-500 bearing Registration No.PB-05-AD-1000, Engine No.30347099, Chassis No.585404, Model 2010. He got insured the said car from the Appellant/OP on 22.09.2017, vide Insurance Policy No.233790/31/2018/308, by paying Rs.1,12,758/-. The said car met with an accident near Harike City, District Taran Taran (Punjab) on 24.12.2017, as it went over some stones placed on the road for diverting the traffic. The weather was bad as well as some construction was in progress on the road. Due to this, the engine chamber of the car was damaged as a result there was oil leakage. Due to traffic as well as being unaware of the oil leakage, the Complainant drove the car and safely parked 600 meters away from the place of accident. Intimation about the said accident was given to the Appellant, who sent a truck for towing the car to the workshop of Benz Motors, Ludhiana. After inspection, the mechanic of Benz Motors informed that the engine of the car was totally damaged and that new engine would be required for complete repairing of the car. He prepared an estimate of Rs.28,50,000/- as the repair cost. The Complainant forwarded the estimate to the Appellant. However, the Appellant avoided its liability to the estimate and offered to pay only Rs.53,500/- vide letter dated 21.07.2018. Since the date of accident, the car remained in the workshop of Benz Motors, Ludhiana for which the Complainant is paying Rs.6,000/- per month as parking charges. Being aggrieved due to non-adherence to insurance contract, the Complainant filed a Consumer Complaint before the State Commission seeking the following relief:—

4. The Appellant/Opposite Party, in its Reply filed before the learned State Commission raised preliminary objections that the claim of the Complainant is under process and has not been repudiated, so the Complaint was pre-mature. It is well settled that cause of action in insurance matters accrues only after repudiation of the claim. It was admitted that the Complainant purchased a ‘Private Car Package Policy for his Mercedes Benz car from 22.09.2017 to 21.09.2018 for an IDV of Rs.65,00,000/-. Clause 2(a) of the policy reads as under:—

“2. The Company shall not be liable to make payment in respect of:—

(a) Consequential loss, depreciation, wear and tear, mechanical or electrical break down, failures or breakages.

(b) xxxxxxx

(c) xxxxxx.”

5. It was pleaded that on 24.12.2017, the Complainant drove the vehicle on the stones kept on the road to block the road and divert the traffic and the car went out of his control. At that stage, it was incumbent upon him to stop the car and examine the damage. Instead, he reversed and continued to drive the car. The complainant admitted to the Investigator that he was aware about the leakage of the engine oil, but he continued to drive till it came to a dead stop and engine got seized. Thus, the damage to the car is excluded under Clause 2(a) of the policy.

6. In addition, in compliance with Clause-4, the Complainant was required to take steps to safeguard the vehicle from loss or da