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High Court Of Himachal Pradesh
SURINDER SARUP,ONKAR CHAND THAKUR,PREM CHAUHAN
NATIONAL INSURANCE COMPANY LTD. - Appellant
Versus
NATIONAL INSURANCE COMPANY LTD. - Respondent
Appeal No. 206 of 2003
Decided On : 03/25/2003
Insurance - Vehicle Insurance - Indemnification for total loss - Certificate of fitness - Surveyor's assessment - Upholding of impugned order with modifications
Fact of the Case:
The appellant's vehicle was insured after the expiry of the certificate of fitness and met with an accident resulting in total loss. The appellant contested the assessment of the total loss amount by the surveyor.
Finding of the Court:
The court affirmed the finding in the impugned order that the claim for indemnification could not be repudiated based on the vehicle being insured after the expiry of the certificate of fitness. The court upheld the principal amount, rates of interest, and litigation cost, but set aside the direction to pay additional compensation if the awarded amount was not paid within 45 days.
Issues: Validity of indemnification claim for total loss when vehicle was insured after expiry of certificate of fitness, assessment of total loss amount by surveyor, and direction for additional compensation
Ratio Decidendi: The court upheld the indemnification claim despite the vehicle being insured after the expiry of the certificate of fitness. The court also upheld the surveyor's assessment of the total loss amount but set aside the direction for additional compensation.
Final Decision: The impugned order was upheld with modifications, and the appeal was disposed of.
1. This may be read in continuation of our order of the previous date i.e. 11.3.2003.
2. The learned Counsel for the appellant states that he has not been above to lay which would have the effect of supporting his arguments referred to in that order, in the face of the decision of this very Commission on which reliance has been placed on behalf of the respondent and referred to in that order dated 11.3.2003. in other words, relying on that earlier decision of this very Commission, we affirm the finding in the impugned order that when the vehicle was insured by the appellant been after the expiry of certificate of fitness, the claim for indemnification could not be repudiated on that ground.
3. It has today been submitted by the learned Counsel for the appellant that the report of the Surveyor clearly goes to show that the vehicle involved in the accident in the present cue was a 1993 Model and, therefore, the total loss was correctly assessed in the report of the Surveyor at Rs. 2,5000/-, which is the amount which should have been awarded, instead of Rs. 3,50,000/-. However, the admitted facts of the case are that the vehicle was insured for the period 8,7.1996 to 7.7.1997 and it met with an accident resulting in its total toss on August 17, 1996, which would mean a month and few days after it was insured for the above amount . In these circumstances, we do not find any ground to reduce the quantum form the insured amount of Rs. 3,50,000/- to the amount assessed by the surveyor i.e. 2,50,000/-.
4. As a result of the above discussion, we uphold the impugned order insofar as the awarding of the principal amount as well as the rates of interest from the date of the complaint and litigation cost of Rs. 500/- is concerned. However, in the facts and circumstances of the case, we set aside the direction to the appellant to pay Rs. 50,000/- as compensation if the awarded amount along with interest etc. is not paid within 45 days from the date of receipt of the copy of the impugned order. With these modifications, we disposed of the appeal.
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