NEW INDIA ASSURANCE CO LTD Vs. ASHOK KUMAR

JUDGEMENT

(1.) This is an appeal against the order dated 19.4.2005 passed by the District Forum, Almora whereby the complaint of the complainant was allowed for a sum of Rs.2,30,000 along with interest @ 9% from 28.3.2003, i. e. , the date of repudiation of claim till the date of actual payment. The appellant was further directed to pay a compensation of Rs.10,000 and costs of litigation of Rs.1,000. The complainant was directed not to return the salvage to the Insurance Company. It was further directed that if the amount is not paid within a month, the Insurance Company shall pay interest @ 12% on the total amount from 4.11.2003 till the date of payment.

(2.) The brief facts of the case are that the complainant purchased a Marshal Jeep No. UP01/5818 on 22.5.2000 after taking a loan from Almora Urban Co-operative Bank Ltd. It was insured for a sum of Rs.4,06,000 with the opposite party for the period from 22.5.2001 to 21.5.2002. It is alleged that on 18.4.2002 the vehicle while coming to Almora from Bareilly met with an accident and the vehicle was totally damaged and it was not repairable. Information was given to the Insurance Company. The claim was lodged with the Insurance Company for the whole insured amount as a case of total loss. The Insurance Company appointed Surveyor and Investigator but did not pay the claim and at last on 28.3.2003 repudiated the claim on the ground that investigation is to be done. Thereafter the complainant filed the complaint before the learned Forum.

(3.) Before the learned Forum, the Insurance Company filed written statement and admitted the insurance and accident. It is alleged that at the time of accident the vehicle was being driven against the terms of insurance. The vehicle was being used as a goods carrier, therefore, the claim was repudiated.