NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSIONHDCF NEW DELHI RESERVED ON: 12.09.2025 JUDGEMENT PRONOUNCED ON : .10.2025 FIRST APPEAL NO. 579 OF 2015 (Against the Order dated 27.05.2015 in Complaint No. 01/2002 of the State Consumer Disputes Redressal Commission Uttar Pradesh)

1.

New India Assurance Co. Ltd., Branch Manager, Lahurabir,Varanasi.

2.

New India Assurance Co. Ltd., Divisional Office Sigra, Varanasi.

Through Manager, New India Assurance Co. Ltd., Delhi Regional Office-I, New Delhi - 110001. Appellants VersusGFEDCBA Virendra Pratap Singh, C-20/1, New Pokhari, Varanasi Respondent BEFORE:

HON'BLE MR. JUSTICE A.P. SAHI, PRESIDENT HON’BLE MR. BHARATKUMAR PANDYA, MEMBER For the Appellants : Mr. Anshum Jain, Ms. Taru, advocates For the Respondent : N E M O

ORDER

PER BHARATKUMAR PANDYA. MEMBER

1.

This appeal has been filed by the insurer (original OP) against State Commission’s order dated 27.05.2015 whereby State Commission, finding deficient service, directed the appellant herein to pay the amount of insurance claim to the respondent. The brief facts of the case are that respondent/complainant purchased a Tata Sumo vehicle and obtained an Insurance policy for the same for the period from 22.03.1999 to 21.03.2000 from the appellant Insurance Company. The Policy was subject to the terms and conditions, endorsements, warranties forming part of the policy. The relevant terms and conditions are "FLEimDitaCtioBn Aas to use: Use only for social domestic and pleasure purposes and for the insured's own business". "This policy does not cover the use for hire or reward or for organized racing pace making reliability trial and speed testing, the carriage of goods (other than samples) in connection with any trade or business of use for any purpose in connection with motor trade". On 07.01.2000, vehicle met with an accident when it hit a stationery parked truck. The driver of the vehicle died and one of the passengers sustained GFEDCBA fatal injuries, while other passengers also received serious injuries. Upon receipt of intimation regarding the accident, appellant insurer appointed Mr. S.K. Singh, Surveyor to survey and assess the loss/damage to the insured vehicle. The surveyor submitted his survey report dated 17.04.2000 assessing the loss of Rs.2,66,202/- and the salvage value of the vehicle was calculated at Rs.70,000/-. The insurer appointed an Investigator Mr. Ravindra Kumar Tiwari who also submitted his investigation report dated 24.04.2000. Investigator in his report concluded that at the time of the accident the insured vehicle was used as Taxi as confirmed by the passengers travelling in it as they had specifically denied to have any relation with the owner of the vehicle.

2. Appellant repudiated the claim of the respondent vide repudiation letter dated 20.06.2000 by relying upon General Exception 3(a), "Company shall not be liable for any accidental loss or damage and/or liability caused sustained or incurred whilst the vehicle herein is: (a) being used otherwise than in accordance with the “Limitation as to Use".

Repudiation letter dated 20.06.2000 (page no. 29) is reproduced below:

F. No. G-7A The New India Assurance Company Ltd.

Branch Office:

Shanti Market, Lahurabir Varanasi:

Tel: 358241, 358270 To, Sri, Virendra Pratap Singh E.50, Kamayani Colony, Pishachmochan, Varanasi Dear Sir, Dt. 20.06.2000 RE: Own damage claim of your vehicle no. UP65/N4877, Accident on 07.01.2000, Policy No. 31/29743 our Claim No. 2000/3264.

On a close scrutiny of the relevant claim papers, copy of FIR, Investigation Report, It is observed that:

1. Vehicle is insured with us under 'Private Car Policy (s)' and Limitations as to use under the policy is worded as follows:

"Vehicle shall only be used for social, domestic and pleasure purpose and fro the insured's own business".

2. As per the evidence available, it is observed that vehicle has used for carriage of passengers on hire at the time of accident and two of them had died in which one was the driver.

3. As such