State Consumer Disputes Redressal Commission
The Oriental Insurance Co. Ltd vs Munni Lal & Bros on 28 April, 2006
IN THE STATE COMMISSION : DELHI IN THE STATE COMMISSION : DELHI (Constituted under Section 9 clause (b)of the Consumer Protection Act, 1986 ) Date of Decision: 28-04-2006 Appeal No. A-1559/2001 (Arising from the order dated 20-04-2001 passed by District Forum(New Delhi), K.G. Marg, New Delhi in Complaint Case No. 1163/95) The Oriental Insurance Co. Ltd, Appellant. DD No.10, 15-16, Scindia House, New Delhi. Versus (1) M/s Munni Lal & Bros Respondent No.1 3723, Roshanara Road, Subzi Mandi, Delhi-110007. (2) Citibank N.A. Respondent No.2. Jeevan Bharti Building, 124, Connaught Circus, New Delhi-110001. CORAM : Justice J.D. Kapoor- President Ms. Rumnita Mittal - Member
1. Whether reporters of local newspapers be allowed to see the judgment?
2. To be referred to the Reporter or not?
JUSTICE J.D. KAPOOR, PRESIDENT (ORAL) Respondent No.1 insured a motor vehicle Maruti Van No. DL-ICB-0826 for a sum of Rs. 1,75,000/-. On expiry of the original policy the respondent sent a cheque for the premium for renewal of the policy w.e.f. 04-06-1993 to 03-06-1994. the vehicle met with an accident on 14th May, 1994. Surveyors were appointed by the appellant. They assessed the damage to the tune of Rs. 1,10,000/-. Inspite of the loss assessed by the surveyors, the appellant did not settle the claim of the respondent. Respondent filed a complaint before the District Forum for payment of the amount assessed by the Surveyors with interest.
2. Vide impugned order dated 20-04-2001 the District Forum has directed the appellant to pay Rs. 1,10,000/- with interest @ 9% and cost of Rs. 5,000/-.
3. Through this appeal the impugned order has been challenged only on the ground that since cheque of Rs. 2,888/- was not received by them as such the policy was not renewed.
4. However, the aforesaid version of the appellant stands falsified from the letter dated 25-05-1993 (Ex. C-1) sent by the respondent which was to the following effect:-
Since we have already received your blank cheques for renewal of the same through Citi Bank, we will present your cheque for Rs. 2,888/- shortly towards the renewal premium after allowing/loading 30% bonus/Malus.
5. The very fact that the appellant appointed two surveryos for assessing the damage shows that the policy was duly renewed after receipt of cheque towards premium. Respondent No.2/Citi Bank could not produce record of cheque transmitting the amount in their account.
6. We do not find any reason to interfere with the finding of the District Forum with regard to the accident during the subsistence of the insurance policy.
However, we feel inclined to substitute the interest by lumpsum compensation of Rs. 25,000/- which shall include the cost of litigation as interest is awarded in those cases where there is a term of contract between the parties or on equitable grounds.
Otherwise, in terms of section 14 of the Consumer Protection Act a consumer is entitled for an amount as compensation as to the loss or injury suffered by him due to the negligence of the opposite party. Loss suffered by the respondent has been made up by allowing the claim. Compensation of Rs. 25,000/- was been awarded for mental agony and harassment.
7. Appeal is partly allowed and disposed of in aforesaid terms.
8. F.D.R./Bank Guarantee, if any, furnished by the appellant be returned forthwith after completion of due formalities.
9. A copy of this order as per the statutory requirements, be forwarded to the parties free of charge and also to the concerned District Forum and thereafter the file be consigned to Record Room.
10. Announced on the 28th April, 2006.
(Justice J.D. Kapoor) President (Rumnita Mittal) Member jj