NATIONAL INSURANCE COMPANY LIMITED Vs. DEEPAK ASSOCIATES

JUDGEMENT

(1.) THIS is an appeal against the order of the State Commission, Tamil Nadu at Madras, in the Complaint No. 152 of 1992 by which the insurance company, i.e., the appellant herein, was directed to pay the respondent Rs. 5,50,000/- with interest thereon at the rate of 9 per cent from 4-1-1990 till payment Rs. 1,000/- towards costs was also awarded.

(2.) THE facts of the case as found by the State Commission are that the respondent is the owner of a Mercedez Benz car bearing registration No. TSB 4514. He has taken a policy of comprehensive insurance for the aforesaid car under policy No. 500200/51012606 with the opposite party, insurance company, for a sum of Rs. 5,50,000/- though the market value was about Rs. 10,00,000/-. While the policy was in force the car met with an accident on 3-10-1989 near Guntarur in which the driver met with instantaneous death and the complainant and his employee, Raghuraman, who were travelling in the car, were injured. THE matter was reported to the opposite party, appellant herein and relevant papers were submitted on 4-10-1989. One Bhairavamurthy was appointed surveyor by the opposite party, insurance company, who surveyed the vehicle on 19-2-1990 and gave his report on 30-4-1990. His report grossly undervalued the loss and the complainant questioned the correctness of the report and wrote to the Manager of the opposite party. THEreupon the opposite party appointed G. Ramamurthy to conduct a resurvey. THE re-survey was done in the month of September, 1990 and the report was submitted in January, 1991. In spite of the letters of the complainant dated 19-3-1991, 24-4-1991, telex dated 26-6-1991 and another letter dated 5-9-1991, the claim was not settled. Hence the complainant claimed the insured value of the car, Rs. 5,50,000/-, with interest thereon.

(3.) AT the hearing of the State Commission the insurance company was prepared to take up for consideration the claim and no argument was advance on the ground of violation of the condition of the policy.