In insurance claims for total loss, the Insured Declared Value prevails over subjective market price, and compensation is owed minus salvage value based on policy provisions.

1. The challenge in First Appeal Nos. 354 of 2020 and 464 of 2020, filed under S.19 of the Consumer Protection Act, 1986 (hereinafter referred to as the Act) by Mr. Ravish Singh (hereinafter referred to as the Complainant) and the IFFCO TOKIO General Insurance Company Ltd. (hereinafter referred to as Opposite Party Insurance Company) respectively, is to the Order dated 29.1.2020 passed by the Haryana State Consumer Disputes Redressal Commission, (hereinafter to be referred to as State Commission), in Complaint Case No. 429/2018 whereby the Complaint filed by the Complainant was partly allowed and the Opposite Party Insurance Company was directed to pay Compensation of 29,31,140 less salvage value of Rs. 1,00,000 and less Policy excess of Rs. 2,000 with interest @ 9% p.a. from the date of accidenttill realization.The Opposite Party Insurance Company was also directed to pay compensation of Rs. 50,000 for mental harassment and agony along with Rs. 20,000 towards litigation expenses. The Opposite Party Insurance Company was also directed to comply with the Order within 45 days failing which it would be liable to pay interest @15% per annum for the defaulting period.

2. Briefly stated the facts of the case as enumerated in the Complaint are that the Complainant purchased a second hand BMW X5 3.0 7 Seater SUV, 2010 make Car bearing Registration No. HR26AU - 0010 from M/s. Zara Infrastructure Pvt. Ltd. and got transferred the Insurance Policy No. 30343167 issued by the Opposite Party Insurance Company, which was valid from 30.3.2017 to 29.3.2018. The Insured Declared Value of the said Vehicle was 29,31,140 (Rupees Twenty Nine Lacs Thirty One Thousand One Hundred and Forty only).The Opposite Party Insurance Company charged premium of Rs. 1,19,915.85 (Rupees One Lac Nineteen Thousand Nine Hundred and Fifteen only). The Policy also included Add on Covers falling under Value Auto Coverage, i.e., ˜Depreciation Waiver Cover' and ˜New Vehicle Replacement Cover' for which additional premium of Rs. 35,906.46 towards Depreciation Waiver Cover and Rs. 20,954 towards New Vehicle Replacement Cover were paid to the Opposite Party Insurance Company.The wording ˜Depreciation Waiver' and ˜New Vehicle Replacement' as provided in the Insurance Policy reads as follows:
DEPRECIATION WAIVER
If the insured vehicle is damaged as per Section B, Scope of Coverage and for which ITGI has the ability in Standard Motor Package Policy, then the benefits of ˜Depreciation Waiver' will be provided to insured subject to the following:
1. ITGI will pay the amount deducted towards the depreciation on parts as per the Survey Report in the partial loss claims under own Damage Section of Standard Motors Package Policy.
2. The benefits of depreciation Waiver will be provided only if the replacement of parts is considered necessary, not that this benefits will be used to change each and every part of the insured vehicle under the claim of OD Section of Standard Motor Package Policy. The irreparability of part(s) will be decided by the Surveyor as approved by ITGI and not by the insured of the Repair Shop.''
NEW VEHICLE REPLACEMENT
If the insured vehicle is lost, damage as per Section B ˜'Scope of Coverage, then the benefits of New Vehicle Replacement will be given as per following condition:
1. If the insured vehicle Becomes a Total Loss within the prescribed age of the Vehicle, ITGI will pay for the actual amount difference between the IDV (Insured Declared Value) of the vehicle and the current Ex - showroom price of New Vehicle of same make, model, features, specificat