RAJESHWARIBEN UPENDRAKUMAR SHAH Vs. ORIENTAL INSURANCE CO LTD

JUDGEMENT

(1.) THIS appeal by the complainant is directed against the Order datedl7th June, 1993passedbytheGujarat State Commission at Ahmedabad directing the opposite party to pay Rs. 2,21,000/- to the complainants with interest at the rate of 12% on the principal amount of Rs. 2 lakhs from the date of the order till the date of realisation besides costs of Rs. 3,000/-.

(2.) SINCE this is a quantum appeal of the complainants based on the findings of fact recorded by the State Commission, we notice bare facts only. One Upendrakumar was covered by insurance policy dated 21st March, 1990 and he met with an accident on 14.1.91 and succumbed to the injury on 26.1.91. The opposite party admitted that they were liable to pay insurance amount of Rs. 2 lakhs. The complainants submitted the prescribed Claim Form No. 21 on 24th March, 1991 to the opposite party. The State Commission rejected the contention of the opposite party that the claim forms were submitted on 24th May, 1991. The opposite party did not settle the claim but sent the vouchers for settlement for the first time on 17th August/1992. At that stage the complainants enquired about the interest and also claimed fund for the children's education by the letter dated September 14,1992. That letter was replied by the Insurance Company in their letter dated November 25, 1992. The State Commission came to the finding that right from March 24,1991 to November 24,1992 the opposite party did not settle the claim. The complainants had claimed the amount of interest from 26.1.91 to 26.11.91 at the rate of 18%. The State Commission, however, granted interest at the rate of 12% to the complainants and calculated this at a figure of Rs. 21,000/-. That is how the direction was given by the State Commission to pay Rs. 2,21,000/- with interest at the rate of 12% on the principal amount of Rs. 2 lakhs from the date of order till realisation.

(3.) THE order of the State Commission is modified to the extent that the opposite party shall pay Rs. 2,60,000/- to the complainants with interest at the rate of 18% per annum on the principal amount of Rs. 2 lakhs from 17th June, 1993 till the date of realisation. The complainants are also awarded costs assessed at Rs. 1,000/-.