NATIONAL INSURANCE COMPANY LIMITED Vs. JAGIR CHAND

JUDGEMENT

(1.) This revision petition has been filed against the order dated 31.3.2011 of the Punjab State Consumer Disputes Redressal Commission, Chandigarh, (in short, 'the State Commission')- By this order, the State Commission partly allowed the appeal of the respondent/complainant and directed the petitioner Insurance Company to pay Rs.5,75,000, minus the amount already paid, within one month from the date of receipt of the order along with interest @ 7.5 % per annum only on the remaining amount, with effect from 6.6.2004 (i.e., after three months from the date of accident) till the date of payment.

(2.) The facts are that the respondent bought a motor car for Rs. 6,06,644 on 2.3.2004 and got it insured for Rs. 5,76,217 (Insureds Declared Value - IDV) with the petitioner Insurance Company for the period 2.3.2004 to 1.3.2005. The car met with an accident on 5.3.2004 while being driven by the respondent and both he and his wife received serious injuries. On 6.3.2004, the Surveyor appointed by the Insurance Company inspected the vehicle and assessed the loss on "total loss" basis, as the car was badly damaged. After nearly 11 months from the date of the accident, the Insurance Company offered to settle the claim for Rs.3,64,000. The respondent received the amount on 19.3.2005 under protest and filed a consumer complaint before the District Consumer Disputes Redressal Forum, Ferozepur (in short, 'the District Forum'), alleging deficiency in service on the part of the petitioner/Insurance Company in that the latter failed to settle the claim on total loss basis for Rs. 5,86,644 though the car was completely damaged and had been assessed on that basis by the surveyor. Before the District Forum, the Insurance Company denied any deficiency in service and stated that the complainant had written to the Surveyor accepting the IDV of Rs. 5,15,000 on "total loss" basis. The Surveyor had also estimated the salvage value of the car at Rs. 1,50,000. Deducting the said salvage value and the excess clause amount of Rs. 1,000 under the insurance policy, the Insurance Company had offered to pay Rs. 3,64,000, based on complainant's own acceptance. The complainant denied having written to the Surveyor accepting the gross amount (IDV) of Rs. 5,15,000 by way of settlement of his claim and also refused to take the damaged car for the estimated salvage value of Rs. 1,50,000. The District Forum, by its order dated 28.7.2005, dismissed the complaint and relegated the complainant to civil Court. It was against this order that the complainant filed an appeal before the State Commission, with the result mentioned above.

(3.) I have heard Mrs. Nanita Sharma, learned Counsel for the petitioner. She has drawn attention to the assessment of the loss by the surveyor, which reads as under: