NEW INDIA ASSURANCE COMPANY LTD Vs. NASIB SINGH

JUDGEMENT

(1.) This is an appeal filed by the Regional Manager, New India Assurance Company Limited (for short hereinafter referred to as the Insurance Company) and others against order dated 17.5.2004 passed by District Consumer Disputes Redressal Forum-I, U. T. , Chandigarh [for short hereinafter referred to as the District Forum] in Complaint Case No.698 of 2002 vide which the complaint was allowed and the appellants/o. Ps. were directed to pay to the respondent/complainant 75% of the total claim amount of Rs.1,30,000/-, which was worked out at Rs.97,500/- with interest @ 7% per annum from 13.2.1997 when the claim was repudiated till payment. A sum of Rs.1,100/- was awarded as costs of litigation.

(2.) The main submission raised before us by Mr. Suman Jain, Advocate appearing for the appellants is that the claim of the respondent/complainant regarding the loss caused to the vehicle in question was repudiated under Clause (ii) of the Circular issued by the GIS regarding such cases where there had been violation of the terms and conditions embodied in the policy of insurance. The Circular mentioned two grounds under which the claim was to be considered and the same reads as under : (i) Where the vehicle is registered and insured as a private car but at the material time of accident some indication is there in the Survey report/investigation report that the vehicle was used for hire and reward but no concrete documentary evidence is available. Such claims may be negotiated and settled as non-standard up to 75% of the assessed amount of loss. (ii) Where there is a concrete documentary proof available to prove that the vehicle registered and insured as private car was used for hire and reward, the O/d claim be repudiated being violation of policy condition. "

(3.) These guidelines were issued by the GIS. Mr. Suman Jain, Advocate pointed out that in the instant case, the vehicle in question was insured as a private car under policy No.31/29095, which was valid for the period from 3.7.1996 to 2.7.1997. The vehicle in question was a Maruti Van bearing registration No. CH-01-J-4851. The said vehicle was stolen on 20.19.1996 and First Information Report was lodged at Police Station Bachraghat, District Solan (H. P. ). The material, which was taken into consideration by the Insurance Company comprised the investigation conducted by the Surveyor-cum-Loss Assessor-cum-Investigator who found the vehicle being plied as a taxi for hire, which violated the terms and conditions of the policy of insurance, which covered the risk for the aforesaid period.