NEW INDIA ASSURANCE CO LTD Vs. MATI RAM

JUDGEMENT

(1.) NOTWITHSTANDING the persuasive arguments advanced before us by Mr. J.K. Bhola, learned Counsel appearing for the appellant, we are unable to find any error of fact or law in the reasoning and conclusion contained in the impugned order of the State Commission. It is very clear from the report (page 26) prepared by a very highly technically qualified surveyor that the damage to the engine of the truck which was involved in the accident would have been caused only on account of over-turning of the truck and the engine continuing to run for a long time without the oil pump supplying oil to the engine. We agree with the finding of the State Commission that the case put forward by the Insurance Company that the damage to the engine was caused on account of some manufacturing defect is devoid of any basis and it cannot be accepted as correct or true. The State Commission has acted quite reasonably in fixing the quantum of compensation payable to the insured and we see no reason at all to interfere with the said fixation.

(2.) THOUGH an appeal has been filed by the insured (complainant) as First Appeal No. 203 of 1992 claiming an enhancement of the compensation awarded to him, for the reasons already stated, we are of the view that the compensation awarded by the State Commission in respect of the damage caused to the vehicle is quite reasonable and the said fixation does not call for any interference. We, however, think that the complainant in entitled to be awarded additional compensation by way of interest for the period during which he has been deprived of the amount due to him under the insurance policy by reason of the delay on the part of the Insurer to settle his claim. The accident took place in June, 1991 and even if we are to allow a period of four months to the Insurance Company as reasonable time within which the settlement ought to have been effected, the complainant is entitled to be paid interest on the amount now found to be due to him by the State Commission from 11th of May, 1991 till the actual date of payment. We fix the rate of interest at 18% and direct that such interest shall be paid to the complainant (insured) in addition to what has been awarded to him under the State Commission's order. These two appeals are disposed of as above. The parties will bear their respective costs.