NEW INDIA ASSURANCE CO LTD Vs. VIMLA DEVI

JUDGEMENT

(1.) WE have heard the parties. The question in the present case is one of the value of the truck at which the compensation should have been assessed. It is in evidence that the truck was stolen and the bodies of the driver and cleaner were found later on in the fields. The truck was insured with the Insurance Company at Rs. 3.5 lakhs in April, 1991 and it was reported to have been stolen in October 26, 1991. The claim was lodged with the Insurance Company who appointed a Surveyor, who determined the present valuation, after allowing depreciation, at Rs. 2,80,000/-. After applying the excess clause at Rs. 1,500/- as per the terms of the policy found the net loss of Rs. 2,78,500/-. In fact, this amount will be less than the amount if full depreciation leviable under the Income Tax Act, was to be deducted which is 20% of the value. That, however, will be a different consideration and has not been determined by the Assessor/Valuer. He has made a bald statement in his report that the value of the vehicle was of Rs. 2,80,000/- at the time of loss. No basis for reaching such a conclusion or any material regarding his inquiries in the market has been furnished. This is arbitrary.

(2.) HOWEVER, allowing the less policy clause, a sum of Rs. 1,500/- can be deducted. Even if 10% depreciation was to be taken into consideration that will bring down the value by Rs. 35,000/- out of Rs. 3,35,000/-. It will, therefore, be appropriate to fix the value at Rs. 3,15,000/- minus Rs. 1,500/-, the net amount payable would be Rs. 3,13,500/-. We also find that the interest at the rate of 18% is on the higher side. The rate of interest should be reduced to 12%. The interest on the amount deposited with this Commission will stop running from the date the amount was deposited and the claimant would be entitled to withdraw that amount together with interest paid by the Bank on such deposit, if the deposited amount had been invested in FDR. On the balance, the interest will continue to run till the date of payment. The interest shall run from the date of the Surveyor's report. The appeal is disposed of in the above terms. The amount shall be paid within six weeks from the date of receipt of a copy of this order. Appeal disposed of.