NATIONAL INSURANCE CO LTD Vs. GUNTAKA SUBBA REDDY

JUDGEMENT

(1.) This revision petition arises under the following circumstance. One Guntaka Subba Reddy, respondent No. 1/complainant, enrolled himself as a member of M/s. Road Safety Club, respondent No. 2/opposite party No. 1 and by virtue thereof a Group Personal Accident Master Policy covering the period from 29th of August, 2004 to 28th of August, 2005 for a sum of Rs. 3,00,000 was issued by the petitioner/opposite party No. 2/Insurance Company. During the currency of the insurance policy respondent No. 1/complainant met with an accident on 5th of January, 2005, resulting in injury to his right eye, resulting in total blindness, but the overall physical permanent disability was assessed to be only 30%. The complainant thereafter submitted his claim before M/s. Road Safety Club, respondent No. 2/opposite party No. 1, but his claim was not settled. A complaint thereafter was filed before the District Consumer Disputes Redressal Forum-II, Krishna at Vijyawada (District Forum for short), alleging deficiency in service on part of M/s. Road Safety Club, respondent No. 2/opposite party No. 1 as well as the present petitioner / opposite party No. 2/Insurance Company, seeking a direction for the payment of Rs. 1,50,000. The complaint was resisted by the opposite parties. The petitioner/opposite party No. 2/Insurance Company advanced the plea that they had not received any claim from the complainant, whereupon the District Forum directed the complainant to forward a fresh set of claim to the petitioner/opposite party No. 2/Insurance Company.

(2.) On consideration of the claim, the petitioner/opposite party No. 2/Insurance Company settled the claim at Rs. 45,000 on the basis of 30% disability. The complainant contested the averment made by the petitioner / opposite party No. 2/Insurance Company that the offer of Rs. 45,000 on the basis of 30% disability was as per the terms of the policy. The District Forum thereafter examined the matter and held that on the basis of the affidavit given by Dr. A. Bala Subrahmanyam stating that the complainant had lost complete sight of right eye was entitled to 50% of the sum assured and directed both the opposite parties to pay a sum of Rs. 1,50,000 towards the claim with interest @ 9% per annum from the date of filing of the complaint till its payment and in addition imposed a cost of Rs. 2000.

(3.) The award of the District Forum was challenged in appeal before the A.P. State Consumer Disputes Redressal Commission, Hyderabad (State Commission for short) by the petitioner/opposite party No. 2/Insurance Company as well as M/s. Road Safety Club, respondent No. 2/opposite party No. 1. The State Commission vide the order impugned has accepted the appeal of M/s. Road Safety Club, respondent No. 2/opposite party No. 1 and absolved them of any liability but has upheld the order of the District Forum for the payment of Rs. 1,50,000 with interest @ 7.5% per annum to be paid by the Insurance Company, the present petitioner.