ORDER

A.P. Sahi, President.—The petitioner is the owner of a bus bearing registration No.RZ15PA1718 that was insured with the United India Insurance Company, the respondent herein. The policy was effective from 12.10.2014 to 11.10.2015. Unfortunately the bus caught fire on 20.05.2015 due to a short circuit in the wiring as a result whereof it got completely gutted, and an owner’s claim for indemnifying the loss was made before the Insurance Company.

2. The vehicle was taken to the garage namely, Rajesh Motors at Jodhpur where the damage assessed was of Rs.12,91,985/-.

3. A surveyor was appointed who conducted the survey and submitted a report on 01.07.2015.

4. The claim was repudiated by the Insurance Company on 01.03.2016 by the following communication:

“United India Insurance Co. Ltd.

Regd & Head Office -24,

Whites Road, Chennai, -600014

Website- http/www.uiic.co.in

Office Code 140093

Office Name- United India Insurance Co. Ltd.

Address- OD Hub, Jodhpur, 4/A, Bhati N Plaza, Barkatullah Khan Stadium, Lane Near Bank of Baroda, Jodhpur, Rajasthan, Jodhpur, Pin-342003

Telephone-+91 02912772046

Without Prejudice Courier Service-Regd A/D

Ref No.14050631150050047001

Sl No.1 on Policy No.140506300491054-34698

Please note that your file stands closed on account of Sr. No.1 and 3 below:-

1. Inspite of letters/reminders sent to you, you have not complied with the required papers/documents.

2. As you have withdrawn you claim by giving your consent through your letter dated.. we are closing your claim file as No Claim.

3. We are closing your claim file on account of following reasons:- Breach of policy conditions Material to loss At the time of accident vehicle in question was having permit to ply on a route between Jaisalmer to Falsund only, whereas at the time of accident vehicle was being plied on Barmer- Nokhra- Hondu Road of which there was no permit with the insured vehicle.

Since the vehicle was not having permit at the time of accident as per terms and conditions of Insurance policy, the Insurance company is not liable.

Thanking you.

Yours faithfully

Admn Officer

Signature

Dr. A K Majumdar

Manager

OD Hub Jodhur”

5. The complainant alleged that the vehicle had caught fire when there were no passengers and it was not plying for business at the time of the accident. In fact the vehicle was returning from the garage where it had gone for repairs and it was being taken by the driver, who went home via Barmer- Nokhra- Hondu Road. The vehicle had an existing valid permit on the date of accident.

6. There is no dispute that the vehicle had a valid permit for plying and to carry passengers on Jailsalmer to Falsund Road. The Insurance policy was valid on that date and there was no other violation or breach of the policy when the accident occurred. The Insurance Company repudiated the claim on the ground that since the vehicle was not plying on the route for which the valid permit had been granted when the accident occurred, the complainant was not entitled for any indemnification. The District Commission Barmer vide order dated 09.03.2017 in CC/102/2016 allowed the complaint holding that the risk was covered and when the vehicle was being plied on Barmer- Nokhra- Hondu Road. There were admittedly no passengers in it and it was the driver alone Mr. Sona Ram who was returning with an empty vehicle after getting the work done in the garage towards his village. It was during this journey that the vehicle caught fire due to a short circuit and the entire vehicle was consumed in the fire. The District Commission also referred to the surveyor’s report.

7. The District Commission after deducting salvage and after assessing the net loss as depicted by the surveyor awarded a sum of Rs.8,24,000/- and 9% interest with effect from 16.05.2016. In addition thereto a sum of Rs.50,000/- for mental agony and costs of Rs.5,000/- was also imposed.

8. Aggrieved the Insurance Company filed an Appeal No.86 of 2017 be