SHIV KUMARI Vs. NEW INDIA ASSURANCE CO LTD

JUDGEMENT

(1.) Appellant was the complainant before the State Commission, where she had filed a complaint alleging deficiency in service on the part of the respondent, New India Insurance Co. Ltd.

(2.) Very briefly the facts of the case are that the appellant/complainant owned a 'Maruti Van' which was insured for Rs. 1,00,000 with the respondent Insurance Company for a period of one year effective 17.10.1990. The Van was stolen on 15.12.1990. The matter was reported to the Police as also to the respondent. A claim was also preferred but when the claim was not getting settled, a complaint was filed before the State Commission, who after hearing the parties dismissed the complaint on the ground that the appellant/complainant had violated the terms of the Policy, vis-a-vis, that the Van was registered as a private car but it was being used for giving it on 'Hire'. Aggrieved by this order, this appeal has been filed before us.

(3.) We heard the learned Counsel for both the parties at some length. Basic facts are not disputed, hence not being reproduced. The only point at issue is that what would be the result of violation of any condition of the policy? As per guidelines of GIC when such a contingency arises, the claim has to be settled by the insurers with the claimant on a 'Non-standard basis'. GIC guidelines are clear that when the condition of the policy is violated in terms of "limitation of its use", the claim has to be settled on 75% basis. There is no disputing the fact that for the first time the insurance cover was taken on 17.10.1990. The value of Car is placed at Rs. 1,00,000 and the vehicle was stolen on 15.12.1990. i.e., within a period of less than 2 months. As per standard terms of the policy there shall be no deduction by way of depreciation, if the claim is to be settled within 6 months of the purchase of new vehicle.