SURVEYOURS WELFARE ASSOCIATION REGD Vs. UNION OF INDIA

JUDGEMENT

(1.) This Letters Patent Appeal arises out of the judgment and order dated 9.5.1995 passed by the learned Single Judge in Civil Writ Petition No. 3115/1994 dismissing the writ petition. The appellant association Filed the aforesaid writ petition seeking a direction to the respondents to strictly adhere to and comply with the provisions of Section 64 UM of the Insurance Act, 1938 (hereinafter referred to as the Act.) and to quash all appointments of unqualilfied persons acting and/or performing duties of surveyors in contravention of Section 64 UM of the Act and to substitute them with only licenced surveyors in terms of the Insurance Act.

(2.) In the writ petition the appellant, as the writ petitioner, challenged the legality and validity of the statement of the Chairman-cum- Managing Director of the Oriental Insurance Company, which appeared in the Issue of 'Economic Times' dated 21st April, 1994, wherein it was stated that the company would not employ licenced surveyors or loss assessors in respect of small claims of the value of less than Rs.20,000.00 and that such claims would be settled by the Insurance Company through its own sources. It appears that a decision was taken by the aforesaid Insurance Company that in case of claims of value of less than Rs.20,000.00 , the Insurance Company will havein- house assessments made by its own staff and they would not seek returns in ease of such claims from licenced surveyors orloss assessors. According to the respondents the said decision was taken so as to simplify the procedure and also to cut downdelays in settling the claims against the Insurance Companies. The appellant appears to have been aggrieved by the aforesaid decision and policy of the respondents and challenged the same through the aforesaid writ petition alleging that the said policy is in violation of the provisions of Section 64 UM of the Act and also is in violation of Acticle 14, 19(1)(g) and 21 of the Constitution of India. The respondents contested the aforesaid writ petition by filing the counter affidavit staling inter alia, that claims, the value of which is less than Rs. 20,000.00 could be settled by the Insurance Company itself, without reference to the approved assessors or surveyors as the provision of Section 4 LJM of the Act do not bar in house assessments or settlement of claims in such cases.

(3.) On, the analysis of the pleadings of the parties in the writ petition the question that arose for consideration of the learned Single judge appeared to be as to whether Under Section 64 UM of the Act any survey by an approved surveyor or loss assessor is necessary in respect of a claim of less than Rs. 20,000.00 and whether or not such a claim could be selLtled by the Insurance Company itself without intervention of an approved surveyor or loss assessor. Therefore, the answer to the aforesaid question appear to be rested upon a true and correct interpretation of Section 64 UM of the Act which was brought into effect by an Amendment Act, 1908 w.e.f. 1st January, 1969.