The court considered the purchase value, depreciation, and market value of the vehicle to determine the insurance claim amount, and allowed interest from six months after the incident.

PER SYED BASH IR-UD-DIN, J, (ORAL)

1. This appeal is directed against the order dated September 07, 1999 of Jammu and Kashmir State Consumers Protection Commission, Srinagar, (for short the Commission hereafter) in Consumer Complaint No. 57/99, whereunder, complaint has been allowed and the opposite party, respondent United India Insurance Co. directed to pay an amount of Rs. 3.20 Lacs with 12% interest on this sum from 01 -03-1999.

2. The claimant purchased a Maruti-Zen-VX for Rs. 3,42,235/-, after availing loan from Jammu and Kashmir Bank. While the vehicle was under subsisting Insurance cover with assured sum of Rs. 3.20 Lacs, it was stolen in January, 1999 within 28 days of its purchase. On failure of Opposite Party to pay the amount, petitioner filed complaint before the Commission. The Commission, after examining the case and documents placed before it found that the vehicle had been insured for Rs. 3.20 Lacs only and not on its full purchase value. The vehicle had been purchased just 28 days earlier to the date of theft. The Commission in the totality of facts and circumstances of the case, allowed Rs. 3.20. lacs as insurance claim.

3. The learned counsel for Appellant, Mr. Manzoor Ali, submits that the Appellant acknowledges and admits subsistence of the Insurance policy regarding the vehicle in the sum of Rs. 3.20 lacs on the material date, when vehicle was stolen. He however, submits that the Surveyor after allowing depreciation on purchase value opined sufferance of loss by complainant in the sum of Rs. 2.75 lacs only and the Commission should have awarded only this much of amount towards pleaded claim.

4. The vehicle was purchased just 28 days earlier to the theft, for a sum of Rs. 3,42,235/-. Even if, depreciation on the purchase value of vehicle for 28 days is given within reasonable limits, say 15% to 17% still the vehicle would have fetched sale price in the car market at a figure of about 3.20 lacs. Even the Commission has observed that the replacement value on the price prevalent in the market for such a vehicle on the material date, is in the range of Rs. 3.20 lacs. The circumstances considered with the Surveyors report; Invoice/purchase letter and Sales Certificate of the Vehicle, reveals that award of Rs. 3.20 lacs is not excessive or unreasonable. The material and evidence on record, as logically probative to a prudent mind, fully justify the award of Rs. 3.20 lacs for loss of vehicle.

5. The counsel next contends that the 12% interest allowed on award money by the Commission from 01-03-1999 is not taking into account, the reality that it takes some time to process and finalise the claim, after it is received. For the Surveyors to report, after taking required investigative steps to verify the actual facts at ground level, also consumes some time. The counsel on these submissions prays that interest may be granted six months after theft. The learned counsel for respondent is not making it an issue and is not contesting the actual date from which interest may be awarded.

6. On consideration, we allow the interest @ 12% on the awarded sum, six months after date of incident, say 1st of August 1999, as same appears just and proper in the facts and circumstances of this case. The Appellants counsel submits that while United India Insurance Co. Ltd. is to make the above payment with interest to respondent, respondent is to produce letter of subrogation, transfer of Registration Certificate and untraceable certificate before the Appellant Company. The respondents counsel submits that these documents have been already produced before the Company and he is prepared to take all further steps required of him in this behalf.

In result, the Appeal, except as to the interest payable six months after the incident (say 1st August, 1999), stands dismissed without order as to costs.

Disposed of.

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