NATIONAL INSURANCE COMPANY LIMITED Vs. AVTAR SINGH

JUDGEMENT

(1.) This is an appeal by the National Insurance Company Ltd. against the order of District Consumer Disputes Redressal Forum, Kapurthala dated 11.10.2005 by which the complaint of the complainant Avtar Singh was allowed in the following terms: "thus the complaint is allowed with costs of Rs.250 with the direction that the complainant should deposit the salvage to the Insurance Company within one month from the date of the receipt of copy of this judgment. If the complainant returns the salvage, then he is entitled to the amount of Rs.2,08,500. In case the complainant does not deposit the salvage with the Insurance Company within the stipulated period, then he is entitled to Rs.1,38,000 and then in all eventualities, the complainant is entitled to interest at the rate of 12% per annum from 4.2.2005 till the receipt of the above amount. "

(2.) Brief facts are that complainant Avtar Singh got his Indica car insured with the National Insurance Company Ltd. and paid Rs.7,115. The insurance was valid from 3.2.2004 to 2.2.2005. Unfortunately on 9.11.2004 the complainant while driving the aforesaid vehicle met with an accident and due to the accident the car was badly damaged. A report was lodged with the Police Station Kathgarh, District Nawanshahr. The estimate for the repair of the car was got from a service garage, which was to the the tune of Rs.2,40,360. The complainant lodged the claim with the appellant Insurance Company and also submitted the estimate which was got prepared from the service garage. The complainant received a letter from the Insurance Company dated 7.2.2005 that due to incorrect information and mis-declaration while taking the policy the complainant was ineligible to lodge the claim and his claim stood forfeited. This led the complainant to file the complaint before the District Forum, which has been allowed as afroesaid.

(3.) It may be observed here that the complainant had signed a declaration for insurance of his vehicle with gap/break in insurance, which is Ex. R/3 on the file. There is column No.4 in this declaation to the effect. "previous insurance particulars/name and address of the company. " This column has been left blank. The next column is "date of expiry of the previous policy and reasons of delay in insurance. " Even this column is left blank. There is a declaration which has been signed by the complainant, which is to the following effect: "i/we the above named do hereby to the best of my/our knowledge/belief warrant the truth of the foregoing statement in respect of the event and further reiterate and declare that the above said vehicle for which the proposal for insurance has been made has not met with any accident or suffered any damages during the period the vehicle remained un-insured. I/we further agree that in the event of my declaration on having been found false or there is any suppression/concealment of any fact, the policy shall be void and will not have any effect and all rights to recover thereunder in respect of past or future claim shall be forfeited. "