NATIONAL INSURANCE COMPANY LIMITED Vs. DEVINDRA DEVI

JUDGEMENT

(1.) PRESENT appeal, under Section 15 of the Consumer Protection Act, 1986, is directed against the order dated 18.01.2014, of learned District Consumer Disputes Redressal Forum, Mandi, whereby respondent's complaint, under Section 12 of the Consumer Protection Act, 1986, which she filed against the appellant, has been allowed and a direction given to the appellant to pay a sum of Rs.1,76,950/ -, on account of insurance claim, with interest at the rate of 9% per annum, from the date of filing of complaint, to the date of its payment and also to pay Rs.5,000/ -, as compensation and another sum of Rs.2,000/ -, as litigation cost.

(2.) LATE Shri Inder Dev, husband of respondent, Devindra Devi, owned a vehicle, which was got insured by him with the appellant for a period of one year, which was to expire on 16.05.2012. The said Inder Dev died on 13.08.2010. Vehicle had been purchased by late Shri Inder Dev, by raising loan from Himachal Gramin Bank, Gagal and, therefore, in the registration certificate, the said bank was named against the column of "hypothecation/Lease Agreement with". After the death of Inder Dev, insurance policy was purchased in the name of the bank, in relation to loan account of Inder Dev, as is made out from insurance policy, Annexure C -2 (OP -1).

(3.) DURING the subsistence of insurance policy, vehicle met with an accident and was extensively damaged. According to the respondent/ complainant, Devindra Devi, who is the wife of Inder Dev, damage caused to the vehicle was to the tune of Rs.2,50,000/ -. Intimation of accident was given to the appellant. A Surveyor, deputed by the appellant, assessed the loss at Rs.1,76,950/ -. However, claim was repudiated on the ground that Inder Dev, being dead, on the date when insurance policy was purchased, there was no valid insurance contract and in fact the contract was void ab -initio.