UNITED INDIA INSURANCE COMPANY LTD. REP. BY ITS DIVISIONAL MANAGER G.T. ROAD, PANDARIPURAM DURGA COMPLEX Vs. VANKAYALAPATI LAKSHMAIAH

JUDGEMENT

(1.) This is an appeal preferred by Op3 insurance company against the order of the Dist. Forum directing it to pay Rs. 75,000/- - together with interest, compensation and costs.

(2.) The case of the complainant in brief is that he availed a loan for purchase of a tractor and trailer from Op1 bank and by virtue of terms and conditions of the loan agreement the bank deducted the insurance amount on 20.3.2004 towards premium. While so, the tractor was involved in an accident on 21/22.3.2004 wherein one Shaik Rahamajan Bee was injured for which she filed a case M.V.O.P. No. 817/2004 on the file of II ADJ, Eluru. On a reference the matter was settled for Rs. 75,000/- and an award of Rs. 75,000/- was passed against him which was paid towards full satisfaction of the claim. When claim was made the insurance company repudiated solely on the ground that the tractor was not covered by insurance policy as on the date of accident. In fact statement of account of the bank discloses that on 20.3.2004 an amount of Rs. 3,568/- was deducted towards insurance premium. The bank did not send the amount to the insurance company. It amounts to deficiency in service. Due to its negligence he was made to pay the amount. Therefore he sought for recovery of Rs. 75,000/- with interest @ 24% p.a., together with Rs. 1 lakh towards mental agony, Rs. 25,000/- towards compensation and costs.

(3.) Op1 bank resisted the case. While putting the complainant to prove the facts alleged in the complaint, however, it admitted that along with complainant two others were owners of the tractor and trailer. All of them had jointly borrowed Rs. 2 lakhs under loan agreement. The borrower has to take insurance on the vehicle. On the request of the complainant a demand draft (DD. for Rs. 3,568/- towards premium was sent to the appellant insurance company on 20.3.2004 along with seven other accounts altogether Rs. 16,938/-. This fact was known to the complainant. The award that was passed by the Lok Adalat was not from any contest. It was not a party to the proceedings. When he himself agreed to pay the said amount he cannot recover the same without proving that there was accident. The Dist. Forum has no jurisdiction and therefore prayed for dismissal of the complaint with costs.