IMPORTANT POINT
Theft – The Insurance Company cannot repudiate the claim in toto in case of loss of vehicle due to theft.

JUDGMENT

Sangita Dhingra Sehgal, President—The facts of the case as per the District Commission record are:—

“The complaint pertains to repudiation of claim by OP on theft of vehicle. The complainant’s vehicle Tata Sumo, bearing No.HR-26G 8735 was insured with OP vide policy No.2002/1863. The vehicle was stolen by two unidentified persons who drugged the driver in the intervening night of 7-8 April, 2002, near Kanpur.

The driver on recovering his senses, returned to Delhi and narrated the incident to complainant’s Director and thereafter FIR was lodged on 14.4.2002 in Achhalada Police Station which is duly annexed with complainant. Claim was filed and untraceable report was made on 13.4.2002.

On 25.2.2003, the Magistrate gave a finding that the road between Achhalanda to Phahphund does not exist and thereafter claim was repudiated. Complainant has also annexed photographs revealing Achhalanda Police Station, elementary school building, Achhalaanda Distt. and Phuphand Milestone. A revised report was made by concerned magistrate on 14.3.2005 that FIR by police is liable to be accepted.”

2. The District Commission after taking into consideration the material available on record passed the order dated 09.04.2015, whereby it held as under:—

“We have considered the entire records. Perusal or file reveals that interim Order was passed on 23.12.11 wherein it was stated that delay has been appropriately explained and OP has no evidence to discredi: the statement of complainant. OP was directed to reprocess the claim afresh. The Forum had observed in Order dated 17.5.12, that OP has again relied on old report of surveyor in which there is ambiguity regarding the existence of road itself instead of sending another surveyor/ investigator to file fresh report OP’s letter dated 15.2.2003, discloses that theft has not taken place at the reported spot and claim was therefore repudiated. None-the-less, complainant has placel photographic evidence including milestone of phuphnd showing the existence of disputed road.

Further the delay in lodging FIR and claim has been appropriately explained, as the driver was drugged and on coming back to conciseness, he returned to Delhi and narrated the incident to owners who thereafter filed the claim. We, therefore, find OP guilty of deficiency in services and direct OP to pay Rs.3, 11,000/- 9% interest from date of claim till realization. We also award Rs.50,000/- as compensation for harassment, mental agony physical inconvenience inclusive of litigation expenses.

The order shall be complied with within 30 days of the receipt of the copy of the order; otherwise action can be taken under Section 25/27 of the Consumer Protection Act.”

3. Aggrieved by the aforesaid judgment of the District Commission, the Appellant/Opposite Party has preferred the present appeal contending that the District Commission erred in ignoring the terms and conditions of the insurance policy as the claim of the respondent was repudiated as per the terms and conditions of the policy in question. The counsel for the Appellant further submitted that the District Commission also ignored the fact that the total sum insured for the vehicle in question was Rs.2,00,000/- but the District Commission awarded claim for a sum of Rs.3,11,000/-. He further submitted that the District Commission erred in holding deficiency on the part of the Appellant as the final report of the concerned police officer also stated that there was no such Achhchalda phaphund road exited, therefore, the Appellant rightly repudiated the claim as there was no such accident. Pressing the aforesaid contentions, the Appellant prayed to set aside the impugned judgment.

4. The Respondents, on the other hand, denied all the allegations of the Appellant and submitted that there is no error in the impugned judgment as the entire material available on record was properly scrutinized before passing the said order.

5. We have perused the material available on record and