LAJ KRISHAN MEHRA Vs. ORIENTAL INSURANCE CO. LTD.

JUDGEMENT

(1.) THE petitioner seeks an order against the respondent, (hereafter called the "insurer") to pay an amount of Rs. 43,000/ - with interest at 12% per annum, with effect from 14.05.2001.

(2.) THE petitioner had purchased a Tata Indica vehicle for a consideration of Rs. 2,93,125/ -; he paid a premium of Rs. 10,743/ - towards an insurance policy, purchased at the time. It is claimed that the policy was renewed for the period upto October 2001; the insurer had evaluated the vehicle at Rs. 2,60,000/ - and charged premium on that basis. The vehicle met with an accident on the Jaipur -Delhi Highway on 14.05.2001. It is contended that after a survey was conducted by the insurer, the vehicle was declared as 'total loss' on 28.08.2001. Accordingly, the insurer paid the petitioner a sum of Rs. 2,07,000/ -.

(3.) THE petitioner argued the case himself; reiterated the submissions made in the pleadings and contended that being a public agency, the insurer could not have resiled from the terms of the policy. He contended that having valued the vehicle at Rs. 2,60,000/ - and even charged premium on that basis, when the vehicle was declared as a total loss, the full value had to be reimbursed. The petitioner drew strength from the decision in Vishan Narain (supra), particularly following observations: