NEW INDIA ASSURANCE CO LTD Vs. GULSHAN KUMAR

JUDGEMENT

(1.) This appeal under Sec.15 of the Consumer Protection Act, 1986 (hereinafter referred to as 'the Act' ). is directed against order dated 11.2.1998 passed by Nand Nagri District Forum in Complaint Case No.598/1997 entitled Shri Gulshan Kumar V/s. New India Assurance Co. Ltd. , whereby appellant Company was directed to pay to the respondent a sum of Rs.33,025.70 p. with 12% interest with effect from 1.1.1996 till realisation and also to pay cost of Rs.1,000/-.

(2.) The respondent had filed a complaint before the District Forum under Sec.12 of the Act averring therein that he was registered owner of vehicle No. DL-IL-A-6369. That the vehicle was comprehensively insured for a sum of Rs.2,49,000/- with the appellant Company from 28.2.1995 to 27.2.1996 vide Policy No.31/20993. Under the said insurance policy, the respondent got covered the risk of the aforesaid Tata Truck 407 No. DL-IL-A-6369. On 12.5.1995, the aforesaid truck was going on National Highway No.24 near rainy well No. II, Nizamuddin Bridge, New Delhi. The vehicle was coming from East of Kailash (DESU Sub-Station) and was going towards Trilok Puri after finishing the job work given on contract. Accident took place near NOIDA turning point, Nizamuddin Bridge. A report of accident was lodged with the Police Station, Trilok Puri and appellant Company was also informed about the damage suffered to the vehicle. Case of the respondent was that he had claimed a sum of Rs.52,846/- from the appellant Insurance Company as he had spent that money on the repairs of that vehicle but the Insurance Company in spite of the repeated visits of the respondent, did not finalise the claim. It was, therefore, prayed that the appellant Insurance Company be directed to pay him a sum of Rs.52,846/- as the amount spent by him on repair, Rs.40,000/- as compensation for mental torture, harassment and expenses incurred in visiting the office of the Company with 18% interest per annum.

(3.) Appellant Insurance Company in its written statement took the plea that the vehicle of the complainant was insured as goods carrying vehicle and since at the time of alleged accident, a number of persons were travelling in the said vehicle against the terms of the insurance policy, the claim of the respondent was repudiated on 10.3.1997 after proper application of mind. It was also the stand of the Insurance Company that Surveyor appointed by the Insurance Company had assessed the loss only to the extent of Rs.33,025.70 p.