MANGAL ENGG WORKS Vs. ORIENTAL INSURANCE COMPANY LIMITED

JUDGEMENT

(1.) The petitioner/complainant purchased a Honda City car bearing registration No.PB-11-T-1947 and got it insured with the opposite party Oriental Insurance Co. Ltd. for the period from 08-05-2010 to 07-05-2011. The case of the complainant is that on 02-06-2010, his friend Amrik Singh borrowed his car to drop a relative at Delhi Airport and while returning from the airport, the car met with an accident in which it was badly damaged. The matter was reported to the police and a surveyor was duly appointed. After the report of the surveyor an investigator, M/s. Royal Associates was appointed by the insurance company to examine the claim. The claim was eventually rejected by the insurance company vide letter dated 23-11-2010, on the ground that having sold the vehicle before it met with an accident, the complainant did not have any insurable interest in the said vehicle. Being aggrieved from the rejection of the claim the complainant approached the concerned District Forum by way of a complaint, seeking payment of Rs.2,00,000/- with interest along with compensation amounting to Rs.25,000/- and cost of litigation amounting to Rs.11,000/-.

(2.) The complaint was resisted by the insurance company primarily on the ground that the vehicle in question had been sold by the complainant to Shri Amrik Singh. It was also stated in the reply that the father of the complainant himself admitted this fact, by way of a letter submitted to the investigator on his letterhead. It was also stated in the reply that the policy was taken without disclosing the fact that the vehicle had been sold to Shri Amrik Singh much before it was got insured from the opposite party. Vide its order dated 16-07-2012 the District Forum directed the insurance company to pay a sum of Rs.1,97,000/- to the complainant along with interest on that amount at the rate of 9% per annum with effect from 01-12-2010. The opposite party was also directed to pay the cost of litigation quantified at Rs.5,000/-.

(3.) Being aggrieved from the order of the District Forum the insurance company approached the concerned State Commission by way of an appeal. The said appeal having been allowed and the complaint having been rejected, the complainant is before us by way of this revision petition.