NATIONAL INSURANCE CO. LTD. Vs. MOHAMMED MASTAN ALI

JUDGEMENT

(1.) THE petitioner being aggrieved of the order of the State Commission Andhra Pradesh in FA No. 1893 of 2005 and FA No. 177/06 has filed the instant revision petition.

(2.) BRIEFLY stated, the facts relevant for the disposal of the revision petition are that respondent filed a consumer complaint in District Forum -I Hyderabad alleging that he being the owner of oil tanker No. AP -12 -T -7347 got it insured with the opposite party insurance company for a sum of Rs. 3,03,750/ - for a period of one year w.e.f. 12.06.2004 to 11.06.2005. The complainant also obtained another insurance policy for a sum of Rs. 3,50,000/ - for the stocks transported in the said tanker. This policy was also valid for the period 12.06.2004 to 11.06.2005. It is the case of the complainant that on 02.03.2005 at around 12.30 a.m., the aforesaid tanker while carrying diesel met with an accident at a distance of about 1 km from Kalwakurthy. Consequently, the diesel contained in the tanker spilled on the ground resulting in heavy loss to the complainant. The tanker was also damaged. Intimation of accident was given to the police as well as insurance company. The insurance company deputed a spot valuer for inspection. According to the complainant, entire stock of diesel worth Rs. 3,41,962.25 paise spilled in the accident. The tanker was entrusted to M/s. Afsar Mechanical Works who gave quotation of Rs. 3,40,150/ - for the repair. The complainant submitted insurance claim for both the loss for the loss of stock and the damage caused to the tanker. The petitioner Insurance Company, however, vide two letters dated 16.05.2005 repudiated both the insurance claims on the ground that at the time of accident, the vehicle was being driven by the driver Chunnumia who did not possess the valid driving licence for driving a vehicle carrying hazardous goods. According to the complainant, the driver had a license for driving heavy vehicle and as such, repudiation of insurance claim was unjustified. Thus, the complainant raised a consumer dispute praying for compensation of Rs. 3,03,750/ - and Rs. 3,41,962.25 paise in respect of respective insurance policies with interest @ 24% besides compensation and cost of litigation.

(3.) BEING aggrieved of the order of the District Forum, the petitioner filed FA No. 1893 of 2005 seeking dismissal of the complaint. The complainant also filed FA No. 177 of 2006 seeking enhancement of compensation. The State Commission on consideration of record and the submissions made by the parties did not find merit in the appeal filed by the petitioner insurance company and dismissed the same. So far as FA No. 177 of 2006 filed by the complainant is concerned, the State Commission allowed that appeal in part and directed the petitioner opposite party to pay to the complainant 75% of the claim amount i.e. Rs. 2,56,471/ - together with 9% interest from the date of repudiation till realisation of amount. This led to filing of revision petition.