NEW INDIA ASSURANCE COMPANY LIMITED Vs. S JEGADEESAN

JUDGEMENT

(1.) THE complainant had insured his car with the opposite party. The said car met with an accident on 19.6.1997. The car was purchased by the complainant at a cost of Rs. 2,50,000/ -. The complainant made a claim with the opposite party. The opposite party informed the complainant that he has been sanctioned an amount of Rs. 1,46,000/ - on total loss basis. The complainant was directed to keep the wreck in "as is where is" condition and surrender the R.C. Book. The Insurance Surveyor inspected the vehicle. The Surveyor intimated the liability of the opposite party in a sum of Rs. 1,60,342/ - on the basis of total loss and worked out the loss on repair basis at Rs. 96,000/ -. A second Surveyor was appointed. The opposite party Insurance Company expressed their desire to settle the matter on total loss basis and sent a letter to the complainant under Ex. A -4.

(2.) NOW , the question to be decided is whether the complainant is entitled to recover the cost of the vehicle or only under total loss basis in a sum of Rs. 1,60,342/ - treating the claim on total loss basis. The vehicle met with an accident within 19 months from the date of purchase. Therefore, the rate of depreciation should be 10%. Condition No. 3 of the insurance policy reads as follows:

(3.) THEREFORE , we allow the appeal in part and modify the order of the lower Forum accordingly, directing the opposite parties to pay a sum of Rs. 1,60,342/ - with interest at 9% p.a. from the date of complaint i.e., 19.6.1998 till realisation along with a cost of Rs. 1,000/ -. Time for payment : 2 months.