NATIONAL INSURANCE CO. Vs. SHRICHAND KAPURIA

JUDGEMENT

(1.) THIS appeal has been filed by the appellants Insurance Co. against order dated 26.7.2002 passed by the District Forum, Churu in Complaint No. 17/2002 by which the complaint of the complainant respondent was allowed in the manner that the appellants were directed to pay a sum of Rs. 3,20,000 alongwith interest @ 12% p.a. and further to pay a sum of Rs. 30,000 as compensation for mental agony and Rs. 1,000 as costs.

(2.) IT arises in the following circumstances - That the complainant respondent had filed a complaint against the appellants before the District Forum, Churu on 1.4.2002 inter alia stating that his Mahendra jeep bearing registration No. RJ 10 T 0077 was got insured with the appellants for the period 22.6.2000 to 21.6.2001 for a sum of Rs. 3,20,000 as Insured's Estimated Value (IEV) and not as Insured Declared Value (IDV). It was further stated that Ishaq was the driver of that jeep and the said jeep was stolen away by some one in the night of 12.3.2001 for which FIR was lodged with the Police Station Rajgarh, Churu bearing No. 71/01 and the police had registered the case and after investigation the police had submitted FR and the same was accepted by the learned ACJM, Rajgarh, Churu through order dated 31.8.2001. It was further stated that a claim about the theft of the vehicle was preferred before the office of the appellants for claiming Rs. 3,20,000 but the appellants through letter dated 28.3.02 had closed the file treating as 'No claim' and further prior to that through letter dated 19.3.2002 intimated the complainant respondent that as per the amount assessed by the Surveyor the claim could be settled for a sum of Rs. 1,98,500 but this amount was not found acceptable by the complainant respondent and the present complaint was filed. A reply was filed by the appellants on 8.7.2002 and the case of the appellants was that since the vehicle in question was of the model of June 1999 and theft had taken place on 12.3.2001 and since the vehicle was insured as IEV, therefore, taken into consideration the depreciation value of the vehicle in question Mr. Ashwani Kumar Agarwal, the Surveyor had rightly assessed the loss to the tune of Rs. 2 lacs and after deducting the relevant amount the claim should have been settled for a sum of Rs. 1,98,000 on total loss basis and thus this amount was rightly offered by the appellants and it was prayed that complaint be allowed to that extent only. After hearing the parties, the District Forum, Churu through impugned order dated 26.7.2002 had allowed the complaint inter alia holding that the complainant was entitled to the full amount for which the vehicle was insured. Aggrieved from the said order dated 26.7.2002 passed by the District Forum, Churu, this appeal has been filed by the appellants.

(3.) IN this appeal the learned Counsel for the appellants has raised following two contentions: (i) That since the vehicle in question was insured as IEV and in case of loss of the vehicle, depreciation value should be taken into consideration and if that was taken into consideration, the Surveyor had rightly assessed the loss to the tune of Rs. 2 lacs and thus decreeing the District Forum was not justified in decreeing the claim to the tune of Rs. 3,20,000. (ii) Further awarding of Rs. 30,000 as compensation by the District Forum was not at all justified when interest was being awarded.