NEW INDIA ASSURANCE COMPANY LIMITED Vs. SAMPETA RAVI

JUDGEMENT

(1.) THIS is an appeal preferred by the opposite party against the order of the District Consumer Forum, Khammam, directing it to pay Rs. 87,200 with interest at 9% per annum, besides compensation of Rs. 10,000 and costs of Rs. 1,000.

(2.) THE case of the complainant in brief is that he is the owner of an auto bearing No. AP 24 V -5645 for which an insurance policy was taken covering the period from 29.11.2005 to 28.11.2006 for a sum of Rs. 87,200. While so, on 12.3.2006 it met with an accident for which a case was registered under Crime No. 24/2006. When claim was made, the Insurance Company repudiated the same, and on that a notice was given for which the Insurance Company gave reply confirming repudiation of the claim on the ground that it was carrying ten passengers more than the limit prescribed. Assailing the said repudiation, the complainant claimed a sum of Rs. 2,00,000 with interest at 12% per annum together with compensation of Rs.25,000.

(3.) THE Insurance Company resisted the case. While admitting the issuance of policy, it denied that the complainant was entitled to any amount. In fact on the date of accident, the vehicle was carrying ten persons un -authorisedly. When claim was made, one E.Y.Madhubabu was appointed as Surveyor to assess the loss. He submitted his report estimating the loss at Rs. 22,500. Later, it was resurveyed through one B. Brahmaiah, who verified and found it to be correct. The vehicle was carrying persons more than the licensed capacity. It can carry only three persons in addition to the driver. The complainant was not entitled to any compensation, and therefore, prayed that the complaint be dismissed.