State Consumer Disputes Redressal Commission
United India Insurance Company Ltd. vs Sh. Trilok Singh on 8 August, 2024
First Appeal No. United India Insurance Company Limited 08.08.2024
266 of 2022 Versus
Sh. Trilok Singh
STATE CONSUMER DISPUTES REDRESSAL COMMISSION UTTARAKHAND
DEHRADUN
Date of Admission: 02.01.2023
Date of Final Hearing: 29.07.2024
Date of Pronouncement: 08.08.2024
FIRST APPEAL NO. 266 / 2022
United India Insurance Company Limited
Divisional Office: A Square Plaza, Tilak Road
Dehradun through Regional Office, Ratan Palace
Kaulagarh Road, Dehradun through its Manager
(Through: Sh. Suresh Gautam, Advocate)
...... Appellant
Versus
Sh. Trilok Singh S/o Sh. Diwan Singh
R/o 15, Shanti Vihar, Raipur Road
District Dehradun (Uttarakhand)
(Through: Sh. J.S. Aswal, Advocate)
...... Respondent
Coram:
Ms. Kumkum Rani, President
Mr. B.S. Manral, Member
ORDER
(Per: Ms. Kumkum Rani, President):
This appeal has been directed against the impugned judgment and order dated 12.10.2022 passed by learned District Consumer Disputes Redressal Commission, Dehradun (hereinafter to be referred as "The District Commission") in consumer complaint No. 77 of 2018, titled as Sh. Trilok Singh Vs. United India Insurance Company Limited, wherein and whereby the consumer complaint was allowed, directing the appellant / opposite party to pay claim amount of Rs. 4,44,000/- (without R.C.) to respondent / complainant along with Rs. 20,000/- towards mental agony and Rs. 5,000/- towards litigation expenses, 1 First Appeal No. United India Insurance Company Limited 08.08.2024 266 of 2022 Versus Sh. Trilok Singh within a period of one month, failing which the respondent / complainant was also held entitled to simple interest @9% p.a. on the aforesaid amount from the date of filing of the consumer complaint till payment.
2. The facts giving rise to the present appeal, in brief, are, as such that the respondent / complainant had filed consumer complaint No. 77 of 2018 before the District Commission against the appellant / opposite party (insurance company), claiming insured amount of Rs. 4,85,000/- along with interest as well as compensation towards mental agony and litigation charges, in regard to damage sustained to his vehicle bearing registration No. UA07-Q-3516 (insured vehicle). According to the consumer complaint, the complainant was the registered owner of insured vehicle, which was insured with the appellant vide policy No. 2501003115P111175480 for the period from 31.12.2015 to 30.12.2016, after paying requisite premium. On dated 07.06.2016, the driver - Sh. Bhupendra Singh was driving the insured vehicle and was going from Rudraprayag to Dehradun. In the way, near Ratangarh, falling between Sumari Mayali, all of a sudden, a cow came in front of the vehicle, due to which the driver lost control over the vehicle and the vehicle fell in a deep ditch, causing grievous injuries to the driver and the insured vehicle was totally damaged and broken into pieces. The intimation of the occurrence was immediately given to P.S. Mayali. The complainant submitted claim with the insurance company and he was assured regarding settlement of claim. However, vide letter dated 01.11.2017, the insurance company repudiated the claim without any reasonable and valid ground, alleging that a gratuitous passenger was sitting in the vehicle at the time of accident, in violation of the terms 2 First Appeal No. United India Insurance Company Limited 08.08.2024 266 of 2022 Versus Sh. Trilok Singh and conditions of the insurance policy. Therefore, the complainant filed the consumer complaint before the District Commission.
3. The consumer complaint was duly contested by the appellant - insurance company by filing written statement, pleading therein that during investigation, it transpired that a gratuitous passenger was sitting in the vehicle at the time of accident in contravention of the terms and conditions of the insurance policy, hence the claim was rightly repudiated by the insurance company.
4. Learned District Commission, after hearing both the parties and after taking into consideration the entire material available on record, passed the impugned judgment and order dated 12.10.2022, thereby allowing the consumer complaint in the above terms. On having been aggrieved by the impugned judgment and order, the appellant - insurance company has preferred the present appeal before this Commission.
5. We have heard learned counsel for the parties and perused the record. It was contended on behalf of the insurance company that learned District Commission has failed to appreciate that gratuitous passengers were being carried by the complainant, which is a violation of the terms and conditions of the insurance policy and clause "limitation as to use" and that no vehicle owner can ply the vehicle on the road against the terms and conditions of the insurance policy. Thus, there was clear violation of the permit as well as Motor Vehicles Act, 1988. It was also contended on behalf of the insurance company that there was no deficiency in service on the part of the insurance company and the insurance company has repudiated the claim of the complainant 3 First Appeal No. United India Insurance Company Limited 08.08.2024 266 of 2022 Versus Sh. Trilok Singh as per terms and conditions of the insurance policy. Hence, the appeal should be allowed.
6. The rival contention raised on behalf of respondent / complainant was that as per permit as well as registration certificate, the seating capacity of the insured vehicle was 3 (including driver), hence there was no violation of terms and conditions of the insurance policy on the part of the complainant and the insurance company has wrongly repudiated the claim.
7. It is an admitted fact that the complainant was the registered owner of insured vehicle, which was insured with the insurance company for the period from 31.12.2015 to 30.12.2016. The accident of the insured vehicle on the ill-fated day is also admitted. It is further undisputed that the accident in question took place on account of sudden coming of cow in front of the insured vehicle, due to which the driver lost control over the vehicle and the vehicle fell into deep ditch. It is admitted that in the said vehicle, the driver sustained grievous hurt and the insured vehicle was totally damaged. It is conceded by learned counsel for the parties that after receiving intimation regarding accident, the insurance company appointed investigator / surveyor. It is also admitted that an F.I.R. was lodged by the complainant with P.S. Mayali, Kotwali Rudraprayag, copy whereof is Paper No. 37 on record. The driving licence of the driver - Sh. Bhupendra Singh was valid on the date of accident and the endorsement to drive transport vehicle made on the driving licence of the driver, was also valid on the date of the accident.
4First Appeal No. United India Insurance Company Limited 08.08.2024 266 of 2022 Versus Sh. Trilok Singh
8. The insurance company has repudiated the claim of the complainant through letter dated 01.11.2017, copy whereof is Paper No. 44, on the ground that at the time of accident, a gratuitous passenger Miss Kanchan D/o Sh. Mahipal Singh was sitting in the insured vehicle, which is against the clause of "limitation as to use" mentioned in general exception of the policy. It is not denied by the complainant that at the time of accident, Miss Kanchan was not sitting in the vehicle. We have also perused the finding recorded by the District Commission, whereby it has held that there was no violation of the terms and conditions of the insurance policy on the part of the complainant and the deceased - Miss Kanchan was travelling in the insured vehicle, as per the terms and conditions of the registration certificate. The copy of the registration certificate and permit of the insured vehicle is Paper No. 38 & 40 on record, wherein the seating capacity of the vehicle is mentioned as 3 (including driver). Thus, as per the above registration certificate and permit, the total seating capacity of the vehicle was 3 (including driver). Therefore, there was no violation of the terms and conditions of the insurance policy on the part of the complainant and the finding to that effect recorded by the District Commission, is perfectly justified and in accordance with law.
9. So far as quantum is concerned, no challenge was made on behalf of the insurance company to the amount of Rs. 4,44,000/- awarded by the District Commission towards claim amount.
10. The next submission raised on behalf of the appellant was that learned District Commission has awarded interest as well as amount towards mental agony and both can not be granted together. He also further submitted that interest @9% p.a. awarded by the District 5 First Appeal No. United India Insurance Company Limited 08.08.2024 266 of 2022 Versus Sh. Trilok Singh Commission is on the higher side. We find force in the said submission made on behalf of the insurance company and we are of the considered opinion that award of simple interest @6% p.a. from the date of filing of the consumer complaint till payment, would meet the ends of justice. The District Commission has awarded an amount of Rs. 20,000/- in favour of the complainant towards mental agony. Since interest has been awarded in favour of the complainant, there is no question of awarding any amount towards mental agony. Therefore, the award of Rs. 20,000/- towards mental agony passed by the District Commission is liable to be set aside. The litigation expenses of Rs. 5,000/- awarded by the District Commission are perfectly justified, hence require no interference. This way, the appeal succeeds partly and is to be allowed accordingly.
11. Appeal is partly allowed. Impugned judgment and order dated 12.10.2022 passed by the District Commission is modified and the appellant - insurance company is directed to pay an amount of Rs. 4,44,000/- to the respondent - complainant towards claim amount together with simple interest @6% p.a. from the date of filing of the consumer complaint, i.e., 24.05.2018 till actual realization and Rs. 5,000/- towards costs, as awarded by the District Commission. Costs of the appeal made easy.
12. A copy of this Order be provided to all the parties free of cost as mandated by the Consumer Protection Act, 1986 / 2019. The Order be uploaded forthwith on the website of the Commission for the perusal of the parties. A copy of this Order be sent to the concerned District Commission for record and necessary information.
6First Appeal No. United India Insurance Company Limited 08.08.2024 266 of 2022 Versus Sh. Trilok Singh
13. File be consigned to record room along with a copy of this Order.
(Ms. Kumkum Rani) President (Mr. B.S. Manral) Member Pronounced on: 08.08.2024 7