State Consumer Disputes Redressal Commission
Universal Sompo General Insurance ... vs Krishan Kumar on 30 January, 2023
APPEAL NO.59 OF 2023 30.01.2023
UNIVERSAL SOMPO GEN. INS. CO. LTD. & ORS. VS. KRISHAN KUMAR
STATE CONSUMER DISPUTES REDRESSAL COMMISSION
HARYANA, PANCHKULA
Date of Institution: 23.01.2023
Date of final hearing:30.01.2023
Date of Pronouncement: 30.01.2023
APPEAL NO.59 OF 2023
IN THE MATTER OF
1. Universal Sompo General Insurance Company Limited, 1st Floor, Jai
Shree Sadan Goverdhanpura Chouraha Jhalawar Road, Kota
Rajasthan through its Branch Manager.
2. Universal Sompo General Insurance Company Limited,
Regional/Zonal Office, Soulstice Building, Plot No.52, Ground Floor,
Sector 44, Gurugram/Zonal Manager.
3. Universal Sompo General Insurance Company Limited, registered &
corporate office, Unit No.401, 4th Floor, Sangam Complex, 127,
Andheri Khula Road Adheri East Mumbai 400050 through its
Managing Director.
....Appellants/Opposite Parties
Versus
Krishan Kumar, aged 32 years son of Shri Shadi Ram, resident of Village
Kharkhara, Tehsil and District Rewari, Haryana.
....Respondent/Complainant
CORAM: HON'BLE MR. JUSTICE T.P.S. MANN, PRESIDENT
MS. MANJULA, MEMBER
Present: Shri Rajneesh Malhotra, counsel for the appellants.
PER: T.P.S. MANN, J.
ORDER
1. Delay in filing of the appeal is condoned for the reasons specified in the miscellaneous application.
2. Universal Sompo General Insurance Company Limited through its Branch Manager, Zonal Manager and Managing Director-opposite DISMISSED Page 1 of 9 APPEAL NO.59 OF 2023 30.01.2023 UNIVERSAL SOMPO GEN. INS. CO. LTD. & ORS. VS. KRISHAN KUMAR parties-opposite parties No.1 to 3 respectively (appellants herein) have filed the present appeal under Section 41 of the Consumer Protection Act, 2019 for challenging the order dated 03.11.2022 passed by the District Consumer Disputes Redressal Commission, Rewari, whereby complaint under Section 35 of the Act preferred by complainant Krishan Kumar was allowed and the opposite parties were directed to pay jointly and severally Insured Declared Value (IDV) i.e. Rs.16,50,000/- of the Canter along with compensation of Rs.1,00,000/- on account of mental agony, harassment and litigation expenses to the complainant with interest @ 9% per annum with yearly rests from the date of filing of the complaint till the expiry of period of one month failing which the said amounts would fetch interest @ 12% per annum with yearly rests.
3. According to the complainant, his canter bearing registration No.RJ32/GB-9276, which was comprehensively insured with the opposite parties valid from 08.01.2020 to 07.01.2021 was burnt in the intervening night of 18/19.04.2020. The fire suddenly broke out in the canter during night time while it was lying parked near his office. The fire was extinguished with the help of fire tenders. The canter was completely damaged and it was a case of total loss. The incident was promptly reported to the opposite parties, who appointed a Surveyor to inspect the canter and submitted the report. Further case of the complainant was that he had been repeatedly requested the opposite parties to settle his claim but to no avail. The said attitude of the opposite parties amounted to deficiency in DISMISSED Page 2 of 9 APPEAL NO.59 OF 2023 30.01.2023 UNIVERSAL SOMPO GEN. INS. CO. LTD. & ORS. VS. KRISHAN KUMAR service as vide letter dated 22.09.2020, they repudiated the claim submitted by the complainant by observing that at the time when the fire broke out in the canter the speaker and the fan were found extra fitted inside the cabin. The complainant had purchased the canter in the year 2017 and it was got registered with competent authority on 24.01.2018. The canter was fully fit to be plied on the road as per fitness certificate issued by the State Transport Department on 15.01.2020. The opposite parties had issued the policy after inspecting the canter and nothing was pointed out either by the opposite parties or by the State Transport Department with regard to any kind of violation of the provisions of the Motor Vehicles Act. The complainant had completed all the formalities by submitting requisite documents well within time but the opposite parties committed deficiency in service by not settling the claim. Even the legal notice dated 29.09.2020 sent to the opposite parties went unheeded. Accordingly, the complainant prayed for settling his claim and to indemnify him by paying the insured declared value (IDV) of canter along with interest @ 18% per annum till the payment. The complainant also sought compensation to the tune of Rs.5 lakhs on account of pain and suffering besides deficiency in service.
4. Upon notice, the opposite parties filed written version denied any deficiency in service on their part. However, the stand of the opposite parties in Para No.3 of the preliminary objections of the written version was that upon receipt of intimation regarding the loss on 24.04.2019 from the complainant, a Surveyor was appointed. Sh. DISMISSED Page 3 of 9
APPEAL NO.59 OF 2023 30.01.2023 UNIVERSAL SOMPO GEN. INS. CO. LTD. & ORS. VS. KRISHAN KUMAR Sanjay Kumar Verma, Surveyor and Loss Assessor on the one hand and the Fire Forensic Investigation deputed investigator to investigate the case. As per reports of the Surveyor as well asFire Forensic, it was observed that at the time when fire broke out in the vehicle, speaker and the fan were found extra fitted inside the cabin. There was an alteration, which alteration fell under the exclusion clause as per Section 52 of the Motor Vehicles Act, 1988. It was further submitted that from the report of the Surveyor, it was observed that the gas stove and some utensils were found inside the cabin area and the forensic report confirmed that the fire had not ignited due to shortcircuit, as feature of short circuit in the vehicle was absent, as the wires which were present inside the vehicle were found burnt due to external heat. The fire in the vehicle was due to some external source, which resulted in loss of the vehicle. Justifying the repudiation of the claim vide letter dated 22.09.2020 the opposite parties, further denied any deficiency in service on their part. Accordingly, dismissal of the complaint was sought.
5. After hearing counsel for the parties and on going through the record, the District Consumer Commission while observing that the opposite parties rendered deficient service towards the complainant by issuing repudiation letter dated 22.09.2022 Exhibit OP2 on the ground that the speaker and fans were found extra fitted inside the cabin of the canter, which was violation of provisions of Section 52 of the Motor Vehicles Act, 1988 as it amounted to alteration of motor vehicle observed that the repudiation of the claim was on account of DISMISSED Page 4 of 9 APPEAL NO.59 OF 2023 30.01.2023 UNIVERSAL SOMPO GEN. INS. CO. LTD. & ORS. VS. KRISHAN KUMAR flimsy ground. It was also observed that there was nothing on the record to show that the fire in canter was attributable to the speaker and fan fitted extra inside the cabin. Even otherwise installation of the speaker and fan inside the cabin did not amount to alteration of motor vehicle in any manner because these were the temporary fitments. The repudiation of genuine claim of the complainant under the garb of Section 52 of the Motor Vehicles Act, 1988 was the outcome of malicious approach of the opposite parties to deny the genuine and fair claim of the complainant. Hence, the complaint was allowed and the opposite parties directed to pay the insured declared value of Rs.16,50,000/- of the canter along with compensation of Rs.1 lakh on account of mental agony, harassment and litigation expenses.
6. Aggrieved of the passing of the impugned order, the opposite parties have filed the instant appeal.
7. Having heard counsel for the appellants and on going through the impugned order, the State Commission is of the considered view that there is no merit in the appeal filed by the appellants and accordingly the appeal deserves to be dismissed. The complainant had purchased insurance policy from the opposite parties with validity period from 08.01.2020 to 07.01.2021 of his canter. It is not in dispute that in the intervening night of 18/19.04.2020, fire broke out in the canter, which was parked near the office of the complainant. On 19.04.2020, after the fire incident, the complainant promptly brought the matter to the notice of the fire brigade and fire DISMISSED Page 5 of 9 APPEAL NO.59 OF 2023 30.01.2023 UNIVERSAL SOMPO GEN. INS. CO. LTD. & ORS. VS. KRISHAN KUMAR tenders reached on the spot and extinguished the fire. There was no long delay in the complainant lodging the report with the Police. Exhibit C5 is the Police Rapat Rojnamcha entry dated 29.04.2020. The complainant had also intimated the opposite parties about the fire incident. The vehicle was fully fit to be plied on the road as per fitness certificate Exhibit C6. Even theTransport Department had brought on record the fitness certificate Exhibit C6 issued by the Transport Department and further vide fire forensic investigation report Exhibit OP5 dated 25.06.2020, it is made out that the fire broke out in the parked canter. The photographs of the burnt canter showed damage to the engine and the other articles lying in the cabin were found completely gutted due to fire. The Investigator also reported that the fire took place due to high amount of heat generated in the vehicle. However, the conclusions did not completely rule out the chance of short circuit, as alleged by the complainant, rather it was opined that possibility of fire to have ignited due to short circuit, was negligible, whose confirmation was to be ascertained after the chemical examination. The report qua examination of the burnt canter showed that the cabin of the canter was affected from the flames of fire, which gradually travelled to its rear portion. However, the flames were not able to trap the entire vehicle as fire patches were observed on the frontal outer metallic body of the canter. With regard to the chemical analysis of the debris collected, it was observed that no foreign material (petroleum product) was found in the articles i.e. samples Ex.01 to Ex.06, which DISMISSED Page 6 of 9 APPEAL NO.59 OF 2023 30.01.2023 UNIVERSAL SOMPO GEN. INS. CO. LTD. & ORS. VS. KRISHAN KUMAR were collected from the affected areas of the canter. All these left no manner of doubt in our mind that it was not a case of self-burning of the canter by complainant or by any of his people to extort the insurance amount from the opposite parties. Mere presence of gas stove and utensils found inside the cabin of the canter is not enough for rendering the finding of any negligence on the part of the complainant. There was no LPG stove inside the cabin of the canter. It was not a case to conclude that fire ignited inside the cabin due to petroleum products as the chemical examination of the articles collected nowhere revealed the presence of petroleum products inside the cabin. There is report Ex.OP5 of Fire Forensic Investigator, from which, it could be inferred that the fire did not take place due to short circuit, rather it happened due to external source. At the same time, no petroleum product could be detected from the samples collected. Therefore, it was immaterial in case the fire took place due to short circuit. Even otherwise, if fire occurred due to external source, it was beyond the control of the complainant, if, the fire broke out in the insured canter due to external source, the opposite parties cannot be absolved of their liability to pay the insured declared value (IDV) of the vehicle to the complainant.
8. The issuance of repudiation letter amounted to deficiency in service on the part of the opposite parties on the ground that the speaker and fan were found extra fitted inside the cabin of the canter. Therefore, the said violation was not covered under the provisions of Section 52 of the Motor Vehicles Act on the ground that it amounted DISMISSED Page 7 of 9 APPEAL NO.59 OF 2023 30.01.2023 UNIVERSAL SOMPO GEN. INS. CO. LTD. & ORS. VS. KRISHAN KUMAR to alteration of Motor Vehicle Act. The repudiation of the claim was on false and flimsy ground as there is no material on record, from which, it could be observed that the fire in the canter was attributable to the speaker and fan fitted extra inside the cabin. The fitments of above mentioned two articles i.e. speaker and fan do not amount to alteration of Motor Vehicle Act in any manner because these are the temporary fitments, which do not amount to alter the nature of canter in any manner. The repudiation of the genuine claim of the complainant was the outcome of malicious approach of the opposite parties in denying the genuine and fair claim of the complainant.
9. As per Surveyor's Report Exhibit OP3, the claim was recommended for settlement on net salvage basis for Rs.16,50,000/- being Insured Declared Value. The loss found was even more as it was found to the tune of Rs.17,71,316.70. Since, the damage caused to the canter in monetary terms is more than the IDV, the District Consumer Commission could not pass any order for the said amount. On the other hand, the opposite parties could be directed to pay IDV of Rs.16,50,000/- to the complainant.
10. Resultantly, the State Commission finds that no case is made out for any interference in the impugned order. The appeal is devoid of any merit and,accordingly, dismissed.
11. Application(s) pending, if any, stand disposed of in terms of the aforesaid order.
DISMISSED Page 8 of 9
APPEAL NO.59 OF 2023 30.01.2023 UNIVERSAL SOMPO GEN. INS. CO. LTD. & ORS. VS. KRISHAN KUMAR
12. The statutory amount of Rs.10,30,620/- deposited by the appellants at the time of filing of the appeal be disbursed in favour of the complainant against proper receipt and identification but in accordance with rules subject to appeal/revision, if any.
13. A copy of this order be provided to all the parties free of cost as mandated by the law. The order be uploaded forthwith on the website of the Commission for the perusal of the parties.
14. File be consigned to record room along with a copy of this order.
(T.P.S. MANN) PRESIDENT (MANJULA) MEMBER Pronounced On: 30.01.2023 DR DISMISSED Page 9 of 9