A NAZAR Vs. NEW INDIA ASSURANCE CO LIMITED

JUDGEMENT

(1.) The appellant filed a complaint before the National Consumer Disputes Redressal Commission, Madras (State Commission) against the respondent-insurance Company. The complainant was the owner of the truck which met with an accident on October 14, (sic) and suffered extensive damage. The truck was insured with the respondent for a sum of rs 1,00,000. The respondent repudiated its liability under the policy on the ground that at the time of the accident, the vehicle was carrying passengers in violation of the terms of the policy. The complainant admitted that some rose plants were being carried in the truck and three occupants - owners of the rose plants were travelling in the truck. The case of the appellant was that no fare was charged from the persons travelling in the truck. The State commission accepted the plea of the complainant that the three passengers in the truck were taken along with their rose plants and had not paid any fare. On that finding, the State Commission allowed the complaint and directed the Insurance Company to pay the balance amount of Rs 77,500. 00 with interest at 12% from the date of accident till payment. The State commission also awarded Rs 1,000. 00 as cost.

(2.) It is not disputed by learned counsel for the respondent that in case the truck was carrying persons who had not paid any fare, then the liability is covered under the policy. The National Commission reversed the finding of the State Commission on the following reasoning:

(3.) We allow the appeal, set aside the order of the National Commission and restore that of the State Commission with costs. We quantify the costs at Rs 5,000. 00.