NEW INDIA ASSURANCE CO LTD Vs. MUSHARAF ALAM

JUDGEMENT

(1.) The New India Assurance Co. Ltd. (hereinafter referred to as the 'Petitioner') has filed this revision petition being aggrieved by the order of the State Consumer Disputes Redressal Commission, Delhi (here in after referred to as the 'State Commission') in Appeal No. 200/ 2007 which was decided in favour of Musharaf Alam, Respondent herein, and original complainant before the District Forum. In his complaint, Respondent had contended that he had got his vehicle bearing No. HR 38H 6629 comprehensively insured from the Petitioner/Insurance Company for a sum of Rs. 5,06,041 from 27.3.2005 to 26.3.2006. During the subsistence of the insurance policy, the vehicle on its way to Belgam met with an accident in which it was substantially damaged. Respondent informed the Petitioner/Insurance Company who got the loss assessed from the Surveyor and a sum of Rs. 53,000 was paid by Respondent towards its repairs. Respondent thereafter submitted his claim along with all the required documents to Petitioner/Insurance Company. However, despite this Petitioner/Insurance Company delayed settlement of the claim. on various pretexts and finally repudiated the same vide letter dated 8.9.2005 on the ground that the driver who was driving the vehicle did not hold a valid driving licence on the date of accident. According to the Respondent, the driver namely, Shri Harish was holding a valid driving licence and also that he had been employed only after Respondent had tested his driving skills. Since Petitioner/Insurance Company did not accept this contention, Respondent filed a complaint before the District Forum on grounds of unfair trade practice and deficiency in service and requested that the Petitioner/Insurance Company be directed to pay the Respondent a sum of Rs. 53,000 spent on the repairs of the vehicle along with interest @ 18%, Rs. 30,000 as compensation for mental agony as well as costs as deemed appropriate.

(2.) The Petitioner/Insurance Company while accepting that the vehicle met with an accident and as per Surveyor, the loss was assessed at Rs. 49,743 stated that it had rightly repudiated the claim on the grounds that the driver was not holding a valid driving licence at the time of the accident and that Respondent had submitted a fabricated and forged driving licence/document which was clearly a violation of the terms and conditions of the insurance policy.

(3.) The District Forum allowed the complaint and directed the Petitioner/ Insurance Company to pay the Respondent, Rs. 49,744 being the loss assessed by its Surveyor, Rs. 10,000 as compensation and Rs. 2,000 towards litigation costs. The relevant part of the order of the District Forum in this connection is as follows: