National Consumer Disputes Redressal
United India Insurance Co. Ltd. vs Rakhwant Singh on 23 November, 2015
NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION NEW DELHI REVISION PETITION NO. 3795 OF 2009 (Against the Order dated 06/08/2009 in Appeal No. 1210/2003 of the State Commission Punjab) 1. UNITED INDIA INSURANCE CO. LTD. Through Regional Manager R.O. II Scope Minar Core 4, Laxminagar Distt Centrict Center Delhi -110092 ...........Petitioner(s) Versus 1. RAKHWANT SINGH S/o. sh. Balbir Singh Village Sotha At Present R/o. Muktsar Punjab ...........Respondent(s)
BEFORE: HON'BLE MR. JUSTICE K.S. CHAUDHARI, PRESIDING MEMBER
For the Petitioner : Mr. S.K.Ray, Advocate For the Respondent : Mr. Abhishek Yadav &
Mr. Narender Yadav, Advocates
Dated : 23 Nov 2015 ORDER
PER JUSTICE K.S. CHAUDHARI, PRESIDING MEMBER
This revision petition has been filed by the petitioner against the order dated 06-08-2009 passed by the Punjab State Consumer Disputes Redressal Commission, UT Chandigarh (in short, 'the State Commission') in Appeal No. 1210 of 2003 - United India Insurance Co. Ltd. & Ors. Vs. Rekhwant Singh, by which while allowing appeal partly, order of District Forum allowing complaint was modified.
2. Brief facts of the case are that Complainant/respondent was owner of Maruti Esteem Car HR-51-D-8115 which was insured by opposite party/petitioner for an amount of Rs.2,50,000/- for a period of one year from 10.01.2002 to 09.01.2003. Car met with an accident on 09.06.2002 and got totally damaged. Intimation was given to opposite party. Claim was lodged with opposite party which was repudiated. Alleging deficiency on the part of opposite party, complainant filed complaint before District Forum. Opposite party resisted complaint, admitted issuance of insurance certificate but denied accident on 09.06.2002 and total loss due to accident. It was further submitted that Dr. Sunita Yadav was insured by opposite party and complainant has no insurable interest in the vehicle. It was further submitted that surveyor assessed loss of Rs.40,230/- but on account of no insurable interest claim was rightly repudiated and prayed for dismissal of complaint. Learned District Forum after hearing both the parties allowed complaint and directed opposite party to pay Rs.3 lakhs with 9% p.a. interest and further directed to pay compensation of Rs.2,000/- and Rs.500/- as litigation expenses. Appeal filed by opposite party was partly allowed by learned State Commission vide impugned order and compensation was reduced to Rs.1,75,000/- and rate was reduced to 7.5% against which this revision petition has been filed.
3. Heard learned counsel for the parties and perused record.
4. Learned counsel for the petitioner submitted that inspite of no insurable interest in favor of complainant, learned District Forum committed error in allowing complaint beyond insurance amount and learned State Commission further committed error in allowing appeal partly, hence revision petition be allowed and impugned order be set aside and complaint be dismissed. On the other hand, learned counsel for the respondent submitted that order passed by learned State Commission is in accordance with law, hence revision petition be dismissed.
5. Perusal of insurance policy reveals that insurance policy was issued in name of Dr. (Mrs.) Sunita Yadav for a period of one year from 10.01.2002 to 09.01.2003 and it appears that later on vehicle was purchased by complainant before accident. Admittedly, insurance policy has not been transferred in the name of complainant. Learned counsel for the petitioner has place reliance on judgment of this Commission in 1(2009) CPJ 158 (National Commission) - Madan Singh Vs. United India Insurance Co. Ltd. & Anr., in which while following judgment of Hon'ble Apex Court in Complete Insulations (P) Ltd. Vs. New India Assurance Co. Ltd. held that if policy is not transferred in favor of complainant, complainant had no insurable interest in vehicle on date of accident, so complaint was dismissed. It was further observed that complainant suppressed material fact of transfer of vehicle in his name and insurance of vehicle in name of previous owner he was not entitled to any relief. Same view was expressed by this Commission in Revision Petition No. 912 of 2011 - Chandresh Rameshchandra Dave Vs. National Insurance Co. Ltd. Hon'ble Apex court in Civil Appeal No. 1816/1982 - G. Govindam Vs. New India Assurance Co. Ltd., while placing reliance on judgment in Complete Insulations (P) Ltd. Vs. New India Assurance Co. Ltd. 1996(1) SCC 221 observed that transferee of the vehicle is not entitled to compensation for damage of vehicle in absence of transfer of policy in his name.
6. In the light of aforesaid judgments it becomes clear that complainant who did not get insurance policy transferred in his name after purchase of vehicle was not entitled to claim compensation on account of loss to the vehicle due to accident and learned District Forum committed error in allowing complaint and learned State Commission further committed error in allowing appeal partly.
7. It is surprising that inspite of specific defense in the written statement and ground of appeal in memo of appeal, neither District Forum nor State Commission considered this aspect that complainant had no insurable interest in vehicle. It is further surprising that learned District Forum allowed compensation of Rs. 3 lakhs though insurance coverage was only for Rs.2,50,000/- and learned State Commission rightly observed that District Forum was not justified to award compensation for an amount more than the amount insured. This reflects on the working of District Forum that they are allowing complaints contrary to record.
8. Consequently, revision petition filed by the petitioner is allowed and order dated 06-08-2010 passed by learned State Commission in Appeal No. 1210 of 2003 - United India Insurance Co. Ltd. & Ors. Vs. Rekhwant Singh and order of District Forum dated 08-05-2003 in Complaint No. 235/2002 - Rakhwant Singh Vs. United India Insurance Co. Ltd. & Ors. is set aside and complaint stands dismissed with no order as to costs.
......................J K.S. CHAUDHARI PRESIDING MEMBER