NATIONAL INSURANCE CO LTD Vs. ALEYAMMA VERGHESE

JUDGEMENT

(1.) Appellant was the opposite party before the State Commission, where respondent/complainant had filed a complaint alleging deficiency in service on the part of the appellant.

(2.) Very briefly the facts of the case are that the complainant had purchased a vehicle Tata Seira on 11.11.1993 and had obtained insurance cover from time to time. Vehicle met with an accident on 13.8.1995. The matter was reported to the authorities as also to the appellant. But when the claim was not being settled, a complaint was filed before the State Commission, who after hearing the parties and perusing the material on record, directing the appellant to pay Rs. 3,98,000 along with interest @ 18% p.a. from the date of filing of this case before the State Commission, damages of Rs. 15,000 and cost of Rs. 5,000. Aggrieved by this order, this appeal has been filed before us.

(3.) We heard the learned Counsel for the parties at some length and found that the order of awarding Rs. 3,98,000 to the respondent/complainant, cannot be sustained in the light of the Surveyor's report which had fixed the net liability at Rs. 2,50,000. There is no disputing the fact that the vehicle was insured for a sum of Rs. 4,00,000. But after two years of its use, replacement cost was assessed at Rs. 3,80,000 and then Surveyor assessed the market value at Rs. 3,50,000 and providing for salvage value of Rs. 1,00,000, the net liability was placed at Rs. 2,50,000. Learned Counsel appearing for the respondent, drew our attention to letter dated 5.9.2005, wherein the Surveyor has informed the respondent/complainant, followed by their reply which reads as under: