State Consumer Disputes Redressal Commission
Subramaniam Mohan vs Br. Manager, Oriental Insurance Co. ... on 12 April, 2016
Cause Title/Judgement-Entry STATE CONSUMER DISPUTES REDRESSAL COMMISSION WEST BENGAL 11A, Mirza Ghalib Street, Kolkata - 700087 First Appeal No. FA/1036/2014 (Arisen out of Order Dated 18/08/2014 in Case No. Complaint Case No. CC/43/2014 of District Kolkata-II(Central)) 1. Subramaniam Mohan 135A, S.P. Mukherjee Road, Kolkata - 26. ...........Appellant(s) Versus 1. Br. Manager, Oriental Insurance Co. Ltd. Direct Agents Branch, 7, Redcross Place, 1st Floor, P.S. - Hare Street, Kolkata - 01. ...........Respondent(s) BEFORE: HON'BLE MR. DEBASIS BHATTACHARYA PRESIDING MEMBER HON'BLE MR. JAGANNATH BAG MEMBER For the Appellant: In-person , Advocate For the Respondent: Mr. Debasish Bhandari., Advocate ORDER DEBASIS BHATTACHARYA, PRESIDING MEMBER
Date 12.04.2016 This appeal has arisen out of the order dated 18.08.2014 passed by the Ld. District Consumer Disputes Redressal Forum, Kolkata, Unit-II (in short, Ld. District Forum) in CC No. 43/2014, as preferred by the Complainant thereof, by the impugned order, the complaint is dismissed.
The case of the Complainant is that his car was covered by the insurance policy of the OP bearing no. 311504/31/2012/1060 on 30.09.2011 of Rs. 2,25,000/-. The said car met with an accident on 15.04.2012, and the authorized workshop M/s. Longia Motors Pvt. Ltd. had given an estimate of Rs.1,71,679/-, which has been submitted to the OP for settlement of the claim. As the cost of retrieval/repair was exceeding 75% of the IDV of Rs.2, 25,000/-, he requested the OP to settle his claim on Constructive Total Loss (CTL) basis as per the policy, which was arbitrarily not accepted. Accordingly, the case.
On the other hand, the case of the OP is that of denial of allegations of the complainant and that an amount of 50% is to be deducted for depreciation since the vehicle is more than 10 years old and thus the amount comes to Rs.85, 839.50, which stands at Rs.82, 805.50 after deducting salvage value of Rs.2, 034/- (approx.) and policy excess of Rs.1, 000/-. If the amount exceeds 75% of the IDV, namely Rs.1, 68,750/-, then the claim would have been settled in CTL basis. Accordingly, the case be dismissed.
It is to be considered if the impugned order suffers from any kind of incongruity so as to make an interference therein, or not.
Decisions with reasons Appellant has submitted that the cost of repair at the garage being Rs.1,71,672/-, it is more than 75% of the IDV, for which he has a good case for getting his claim on the basis of Constructive Total Loss. It is also not mandatory to repair the vehicle first by the insurer. No step has also been taken by the Insurance Company to reinstate the vehicle or parts thereof.
Ld. Advocate for the Respondent has submitted that admittedly the car in question is an old one, and its date of registration is 06.1.1999, whereas the accident took place on 15.04.2012, which is about 13 years after manufacture. The deduction for depreciation for a vehicle exceeding 10 years is 50%. Accordingly, an offer of Rs.82, 500/- was made to the Complainant, which he refused to take. So, the instant case is nothing but to grab more money.
It can not be said that the vehicle was damaged to the extent that it can be considered as a case of Total Loss (TL). In case of Constructive Total Loss (CTL) also, the aggregate cost of retrieval and / or repair of the vehicle should not exceed 75% of the IDV. In this case, after deducting depreciation at 50%, being the vehicle is more than 10 years old, the liability of the insured Company is Rs.82,500/-, which is less than 75% of the IDV. So, the effect of Constructive Total Loss (CTL) can not be considered in this case towards the Complainant/Appellant, as per the terms and conditions of the policy concerned. Accordingly, the Complainant / Appellant has no proper case for getting a claim on the basis of Construction Total Loss. Thus, the appeal fails. The impugned order is a rightful one and is affirmed. Appeal is dismissed.
[HON'BLE MR. DEBASIS BHATTACHARYA] PRESIDING MEMBER [HON'BLE MR. JAGANNATH BAG] MEMBER