SUMIT KUMAR AGARWAL Vs. ORIENTAL INSURANCE CO. LTD

JUDGEMENT

(1.) Complainant/Petitioner is the registered owner of the Swaraj Mazda vehicle bearing registration No. UA-04A-1545. The said vehicle was insured with the Respondent Insurance Company for a sum of Rs. 3,50,000 for the period from 10.3.2004 to 9.3.2005. On 11.4.2004, the said vehicle met with an accident at P.S. Kaladhunga and got completely damaged. A police report was lodged and intimation was given to the Respondent Insurance Company. Respondent appointed a surveyor to inspect the spot and later on the vehicle was brought to the Amit Automobile, Dealer Swaraj Mazda at Haldwani. Amit Automobile submitted the estimate of Rs. 2,50,000 for repairing the said vehicle. After inspection of the vehicle, the Surveyor found that the steel body of the vehicle was not damaged, the engine assembly was intact and that the cabin was badly damaged. But the Surveyor did not agree to change the cabin shell and assessed the loss "on repair" basis. Complainant, being aggrieved, filed the complaint before the District Forum alleging that the vehicle was new and it was badly damaged in the accident and was not worth repairable. That the claim be settled on 'total loss" basis instead of "repair basis". Complainant claimed the total sum of Rs. 4,08,500 on total loss basis. Insurance Company, on being served, entered appearance and filed its written statement. It was admitted that the vehicle was insured with it However, it is contended that the claim was highly exaggerated and excessive; that as per report submitted by the Surveyor, the damage to the vehicle was not total and the same could be restored on repair basis; that the Surveyor after making certain deductions had assessed the loss at Rs. 57,454.70 which the Respondent was prepared to pay.

(2.) District Forum was not satisfied with the report submitted by the Surveyor and directed the A.R.M, U.P. Roadway of Kathgodam Depot Haldwani, District Nainital to appoint Senior Foreman for the investigation of the said vehicle. Based upon the report submitted by the Senior Foreman of the U.P. Roadway, District Forum allowed the complaint and held that the loss to the vehicle was total. District Forum directed the Respondent to pay Rs. 3,50,000 to the Complainant on 'total loss' basis along with interest @ 6% from the date of filing of complaint till realization. Rs. 1,500 were awarded by way of costs.

(3.) Respondent, being aggrieved, filed the appeal before the State Commission.