NATIONAL INSURANCE COMPANY LTD Vs. N.K.FINANCERS

JUDGEMENT

(1.) These two cross revision petitions have been preferred by the National Insurance Company Ltd. (for short "the Insurance Company") and the complainant, under Section 21 of the Consumer Protection Act, 1986 (for short "the Act") assailing the common order passed by the State Consumer Disputes Redressal Commission, UP at Lucknow (for short "the State Commission") in Appeals no. 2409/SC/04 & 137/SC/05. By the impugned order the State Commission, modifying the order passed by the District Consumer Disputes Redressal Forum, Bulandshahar, (for short "the District Forum") has directed the Insurance Company to pay to the complainant an amount of Rs. 3,90,675/- with interest @ 9% p.a. from 30.06.2003 i.e. after the expiry of three months from the date of surveyor's report. It has also been directed that if the said amount is not paid within the specified period, interest @ 15% p.a. shall be payable.

(2.) The complainant, a financier, advanced loan of Rs. 5,00,000/- to one Jai Singh for purchase of Ashok Leyland truck on hire-purchase basis. The truck was registered on 06.12.1996. The complainant insured the truck with the Insurance Company declaring its value at Rs. 6,00,000/-. It was a comprehensive policy covering the period from 09.03.2000 to 08.03.2001. A premium of Rs. 10,759/- was paid. On the intervening 3 and 4 July 2000 night the vehicle was stolen. The police was informed. Information regarding theft was also given to the Insurance Company on 06.07.2000. Final untraceable report in respect of the vehicle, filed by the police, was accepted by the Magistrate on 23.12.2002.

(3.) Thereafter, the complainant lodged its claim for compensation with the Insurance Company. The Insurance Company appointed a surveyor to assess the loss for the vehicle. It appears that on receipt of the surveyor's report, the Insurance Company offered to pay to the complainant a sum of Rs. 2,85,000/-, though the loss assessed by the surveyor on the basis of the market value of the vehicle at the time of theft was Rs. 4,88,344/-. The said amount seems to have been accepted by the Complainant. Being dissatisfied with the amount of compensation received, seemingly under pressure, the complainant filed a complaint before the District Forum under section 12 of the Act praying for compensation of Rs. 6,00,000/-. The District Forum directed the Insurance Company to pay to the complainant, as compensation, an amount of Rs. 6,00,000/- with interest @ 12% p.a. from 01.07.2003 and cost of proceedings, quantified at Rs. 1000/-.