UNITED INDIA INSURANCE COMPANY LTD. Vs. AZEEM

JUDGEMENT

(1.) AGGRIEVED by a direction to pay Rs. 2,54,000/ - with interest at the rate of 14% per annum, the petitioner - United India Insurance Company Ltd. has preferred the writ petition challenging order dated 01.02.2007 in PLA Case No. 51 of 2006 passed by Permanent Lok Adalat, Jamshedpur.

(2.) THE narration of facts in the writ petition discloses that, the respondent namely, Md. Azeem preferred a claim case being PLA Case No. 51 of 2006 in the Permanent Lok Adalat at Jamshedpur claiming payment of total loss claimed on account of the accident of the insured vehicle. The Complainant is the registered owner of the vehicle (Tata Pick - Up Van) vide Registration No. JH -05 -E -8829 and the said vehicle was insured vide Insurance Police No. 210801/31/05/01537 which was valid for a period of one year between 26.10.2005 to 25.10.2006. The insured vehicle met with an accident on 29.11.2005 at about 5.30 am and the vehicle was seriously damaged and the khalasi died on the spot. A case being Ranchi Sadar P.S. Case No. 105 of 2005 dated 29.11.2005 under Sections 279, 304A and 427 of the Indian Penal Code was registered. The Complainant informed the Insurance company and the vehicle was surveyed by the surveyor of the Insurance company. An estimate for repair of the damaged vehicle was obtained by the Complainant however, the Insurance company advised the complainant not to get the vehicle repaired because the estimate for repair was found excessive. Considering the insured value for Rs. 2,30,000/ -, the Insurance company declared the total loss to the vehicle as Rs. 2,29,000/ - and processed the claim for the same amount. However, inspite of repeated request by the Complainant, the claim was not settled and vide letter dated 05.09.2006, the Insurance claim, that is, Insurance Claim No. 210801/31/5/00115 was repudiated by the petitioner - Insurance company on the ground that the vehicle was plying without Fitness Certificate when the accident occurred. In response to letter dated 05.09.2006, the Complainant submitted his reply vide letter dated 12.09.2006 informing the Insurance company that vide Reference No. 819 dated 18.08.2005, the Complainant had deposited fee for grant of Fitness Certificate and the Fitness Certificate was issued on 29.11.2005. However, the Insurance company repudiated the Insurance claim on the ground that at the time of accident the vehicle was plying without valid Fitness Certificate.

(3.) A counter -affidavit has been filed supporting the impugned order dated 01.02.2007. It is stated that the terms and conditions of the Insurance policy do not provide that if the Certificate of Fitness is issued on the date of accident, no claim would be settled. In fact, the application for grant of Certificate of Fitness was made much prior to the date of accident. The petitioner having participated in the proceeding and after filing written statement and leading oral evidence for contesting the claim of the Complainant, cannot be permitted to take a plea that the Permanent Lok Adalat has no power to enter into the merits of the case.