IMPORTANT POINT
It cannot be assumed that complainant had submitted false and fabricated documents before insurance company while taking insurance policy.

ORDER

Kumkum Rani, Judicial Member II—This complaint has been filed on behalf of the complainant - M/s Fauji Earthmovers, a Proprietorship Concern, and Sh. Ompal Singh is the sole proprietor of the said concern and as such is fully authorised to sign and verify the present consumer complaint on behalf of the complainant. The complainant had purchased a machine known as Tata Hitachi EX200 LC Super from Time Equipment Private Limited for sum of Rs. 47,62,125/- vide invoice dated 10.12.2015. For purchasing the said machinery, the complainant had availed the finance facility from the opposite party No. 2 – financier. The complainant’s above machine was duly insured with the opposite party No. 1 for the period from 10.12.2015 to 09.12.2016 vide Contractors Plant and Machinery Insurance Policy bearing No. 2502024415P110634957 for a sum of Rs. 45,00,000/- against all the risks. During the currency of the insurance policy, the insured machine got damaged in an accident on 18.12.2015 at about 2:30p.m. while working at Jakhol Liwadi – Fitari Motor Road. The intimation of the accident was firstly given on telephone to the opposite party No. 1 and after intimation of the incident, two surveyors of the opposite party No. 1 visited the accident site and took the photographs of the spot as well as the damaged machine, which was lying in deep ditch. The damaged machine could not be taken out / recovered from the deep ditch, where it had fallen on account of the accident. Surveyors of the opposite party No. 1 told the complainant that it is a case of total loss and it is also not possible to bring out the machine from the ditch. The complainant had submitted all the documents, as required by the surveyors, but after several visits of the complainant to the office of the insurance company, there was no response from the side of the insurance company. After completion of the entire formalities, the complainant again approached the opposite party No. 1 regarding the status of his claim, whereupon he was told that the file has been sent to the higher office for approval of the complainant’s claim. On dated 17.07.2019 the complainant had received a letter from the opposite party No. 1 to the effect that the claim of the complainant was repudiated by the authority on the ground of misrepresentation, concealment of material facts and submission of false documents etc. Upon receipt of the repudiation letter dated 17.07.2019, the complainant immediately approached the Branch Manager of the insurance company and asked him that what are the misrepresentation, concealment and false documents submitted by him, but the Branch Manager has totally refused to show anything regarding the alleged misrepresentation and concealment to the complainant. On account of the above act of the opposite party No. 1, the complainant suffered many losses and he had to pay installment per month to the financier, but he is unable to pay the same after the date of incident of the insured machine. Due to the fault of the opposite parties, the complainant has suffered mental and economic loss and also the other expenses incurred during the said period. There is deficiency in service on the part of the opposite parties. The complainant is a consumer as defined under The Consumer Protection Act, 1986 and Commission has jurisdiction to try the consumer complaint because the accident took place within the jurisdiction of the Commission, therefore, the complaint be allowed directing the opposite parties to pay the total loss of Rs. 45,00,000/- with interest @ 12% per annum from the date of accident till payment to the complainant. The opposite parties be also directed to pay an amount of Rs. 6,00,000/- for harassment and mental agony and Rs. 25,000/- towards costs of litigation.

3. Opposite party No. 1 – United India Insurance Co. Ltd. has filed its written statement alleging that