VYOM BHARGAVA Vs. RELIANCE GENERAL INSURANCE COMPANY LTD

JUDGEMENT

(1.) This is an appeal by the cmplainant whose complaint has been partially allowed by the District Consumer Disputes Redressal Forum, Ludhiana vide the impugned order dated 27.1.2006 in the following terms : "In view of our above discussion, there is no merit in the present complaint and the same is dismissed. However, an amount of Rs. 2,85,520 towards claim be given to the complainant on his furnishing documents, if any. Parties are left to bear their own costs. File be completed and consigned to record. Copy of order be supplied."

(2.) Brief facts may be noticed : The complainant got his car, Maruti Suzuki Wagon-R, bearing Registration No. PB-10AX-0368, insured from the respondent Insurance Company on 22.7.2003 at an Insured s Declared Value (IDV) of Rs. 3,15,000 it was clearly mentioned in the insurance policy that it was the IDV and not insured s estimated value (IEV). Premium was charged by the Insurance Company on the IDV of Rs. 3,15,000 . Unfortunately, the said car was stolen from Mall Road, Ludhiana on 29.7.2003 i.e. within 7 days of the insurance. A claim was lodged by the complainant with the Insurance Company. A Surveyor was appointed, who after assessing the value of the car and after deducting depreciation from the IDV came to the conclusion that the complainant will be entitled to Rs. 2,85,520, which has been granted by the District Forum. This appeal has been filed by the complainant on the ground that once the IDV of the vehicle was accepted by the respondent Insurance Company and it was not the IEV, nothing further could be deducted from that amount if the vehicle was a total loss in an accident or was stolen as in the present case. This argument has been raised on the basis that no depreciation etc. from the IDV of Rs. 3,15,000 could be made inasmuch as the vehicle was stolen within 7 days of the insurance. It could have been a different case that if the vehicle was stolen almost at the end of the year after the taking of the insurance, then in such circumstances depreciation from the IDV for a period of one year could be deducted.

(3.) What is the Insured s Declared Value (IDV) This is the value, which the complainant puts as the market value at the time the insurance is done. It is for the Insurance Company whether to accept the value, i.e. as the IDV or it may negotiate on that value after getting some evidence that in fact the market value of the vehicle to be insured is less than what is being put by the customer and then it would be upto the insured whether he or she wants to get his/her vehicle insured on that lesser market value as suggested by the Insurance Company. Once the IDV of a vehicle is accepted by the Insurance Company and premium charged on that value, no deductions can be made in the case of a total loss OR in case of theft of the vehicle subject to what has been observed by us above.