NATIONAL INSURANCE CO. LTD. Vs. KUNWAR PAL

JUDGEMENT

(1.) The instant petition has been filed under Article 226/227 of the Constitution of India for issuing a writ in the nature of certiorari for quashing the impugned order dated 26.9.2013 (P-6) passed by respondent No. 2.

(2.) Respondent No. 1 Kunwar Pal got his motorcycle bearing registration No. HR30-J-8120 insured from the petitioner-Company vide policy NO. 3510073111620054287 on 2nd June, 2011 which was valid from 02.06.2011 to 01.06.2012 for a sum of Rs.39,853/- (P-1). The motorcycle was stolen on 04.07.2011 at about 1.30 P.M in front of Tehsil compound, Palwar. The matter was reported to the police and F.I.R bearing No. 342 dated 23.08.2011 was registered in this behalf (P-2) and subsequently, respondent No. 1 informed petitioner- Insurance Company on 03.08.2011. The claim of respondent No. 1 was repudiated on the ground that there was an inordinate delay of 30 days in informing the petitioner.

(3.) Respondent No. 1 thereafter filed a petition u/s 22(c)(I) of the Legal Services Authority Act before respondent No. 2 and efforts were made for reconciliation. Even respondent No. 1 agreed to received a sum of Rs.33,000/- against the claim raised by him. However, the Insurance-company pleaded that it was a case of violation of mandatory clause contained in insurance policy and thereafter, the petitioner/respondent No. 1 was not entitled to receive any compensation for the theft of the motorcycle. Respondent No. 2 then opted to proceed further in this petition by invoking Section 22(C)(8) of the Act and decided the case on merits. It was held that after the theft of the motor cycle on 04.07.2011, Kunwar Pal informed the SHO, Police Station on the same day i.e on 04.07.2011. F.I.R was registered thereafter on 23.08.2011. The delay for registration of F.I.R cannot be attributed to Kunwar Pal with regard to the information which was given after 30 days. Reference has been made to the instructions issued by Insurance Regulatory and Development Authority on 20.09.2011 to all the insurance companies. As per this insurance this condition should not prevent settlement of genuine claims particularly when this delay in intimation or in submission of documents is due to unavoidable circumstances. The companies were advised that they must not repudiate such claims on the ground of delay. Keeping in view the above instructions, the PLA has given a direction to petitioner-Insurance Company to pay an amount of Rs.39,853/- within three months from the dat of award failing which Kunwar Pal shall be entitled to recover the amount alongwith interest at the rate of 7.5% per annum calculated from the date of filing of this petition till the realization of the whole of this amount.