NEW INDIA ASSURANCE COMPANY LIMITED Vs. KAMLI DEVI

JUDGEMENT

(1.) THIS is insurer s appeal against the order dated 3.12.2007 passed by the District Forum, Uttarkashi, whereby the consumer complaint No. 6 of 2007 filed by the complainant was allowed and the complainant was held entitled to compensation of Rs. 13,000 with interest @7% p.a. w.e.f. 21.6.2004, the date of death of the buffalo till payment and Rs. 1,500 as litigation expenses. The liability to pay the said amount was fastened on respondent No. 2 Zila Sahkari Bank, which had advanced loan to the complainant for purchase of the buffalo and at the same time, the Insurance Company was held liable to pay the said amount to the complainant in the first instance, giving it an option to thereafter realize the said amount from the bank. The delay in filing the appeal is condoned and the appeal is admitted for decision on merit.

(2.) THE facts giving rise to this appeal are that the buffalo of the complainant was insured for sum of Rs. 13,000 vide policy No. 321902/47/04/00119 for the period from 16.6.2004 to 15.6.2007, issued on receipt of the premium from the bank vide cheque dated 16.6.2004. Total premium of Rs. 14,976 was paid by cheque to the Insurance Company for and in connection with insurance of buffaloes of 12 villagers including that of the complainant and, as such, the buffalo of the complainant was covered under the policy of insurance from the said date. Complainant s buffalo admittedly died on 21.06.2004, that is, within a period of 15 days and, as such, the Insurance Company under the terms and conditions of the policy of insurance, was not liable to pay the claim on account of death of the insured buffalo due to disease occurring within 15 days from the commencement of risk. The claim preferred was, therefore, repudiated.

(3.) THE District Forum, on an appreciation of the facts of the case, came to the conclusion that since the policy of insurance has been issued on 16.6.2004 and the death of the complainant s buffalo occurred within 15 days from the commencement of risk, the Insurance Company has not made any deficiency in service in repudiating the claim by virtue of the terms and conditions of the policy of insurance. The District Forum, however, opined that the bank had been negligent and careless in getting the buffalo of the complainant insured from an earlier date when the premium had been realized by it from the loan amount advanced to the complainant for purchase of the buffalo and, as such, the liability to pay the compensation was that of the bank. The District Forum, however, observed that in the first instance, the amount of compensation shall be payable by the Insurance Company, which, at its option, may realize the amount from the bank.