LAWS(NCD)-2006-11-31

M JAYAKARACOMPLAINA Vs. NATIONAL INSURANCE CO LTD

Decided On November 16, 2006
M Jayakara Appellant
V/S
NATIONAL INSURANCE CO LTD Respondents

JUDGEMENT

(1.) The complainant has filed this complaint seeking for a direction to the O.P. to pay a sum of Rs. 6,68,500 and Rs. 5,00,000 towards the loss of business and mental agony and Rs. 5,000 per month towards the loss of earning from the date of mishap i.e., from 23.5.1984 till realisation with interest at 18% per annum.

(2.) The facts in this case are as follows : The complainant is the owner of a vessel which was insured with the O.P. for the period from 31.1.1984 to 30.1.1985. The said vessel was lost on a high sea on 23.5.1984. Thereafter the complainant made a claim with the Insurance Company for payment of compensation since as on the date when the vessel was lost the policy was in force. But the Insurance Company as per its letter dated 13.2.1987 has offered a sum of Rs. 5,01,375 in full and final settlement of the claim of the complainant. The said offer was not accepted by the complainant. But for the reasons best known to the complainant the complainant has not filed any complaint alleging deficiency in service immediately after the rejection of the offer made by the Insurance Company.

(3.) In the meanwhile it is brought to our notice the Syndicate Bank, which advanced the loan to the complainant to purchase the vessel has filed a suit in O.S. No. 251/1988 for recovery of the money. When the suit was pending consideration before the Civil Court, Debt Recovery Tribunals Act came into force. Pursuant to the provisions of the said Act, the suit filed by the Syndicate Bank was transferred to the DRT. The DRT by its order dated 31.7.1998 allowed the claim of the Syndicate Bank directing the complainant and the guarantor to pay a sum of Rs. 12,77,170 with interest to the Syndicate Bank.