NATIONAL INSURANCE CO LTD Vs. SANJAY SHIVHARE

JUDGEMENT

(1.) IN these Revision Petitions, question involved is " in case of breach of the policy condition as to limitation of use of the vehicle, whether the insured is entitled to reimbursement on the basis of policy adopted by the insurance companies of settling such claims on non-standard basis? In our view, the policy of the insurance companies, on the basis of the guidelines, is required to be followed and adhered to. In such cases, claims are required to be settled on non-standard basis. For the reasons recorded hereinafter, these Revision Petitions are disposed of by this common judgement. Being aggrieved and dissatisfied by the judgement and order dated 8.4.2003 passed by the State Consumer Disputes Redressal Commission, M.P., in Appeal No.1286/02, the National Insurance Co. Ltd. (hereinafter referred to as the insurance company) has preferred Revision Petition No.2393/2003 contending that the State Commission, by its order dated 2.8.2002, erred in reversing the order passed by the District Forum, Jabalpur, in Complaint Case No.239/2000 and directing the insurance company to pay a sum of Rs.1,68,750.00 with interest at the rate of 6% p.a. from the date of filing of the complaint, i.e. 18.9.2000 along with Rs.5,000.00 as costs of proceedings by arriving at a conclusion that the market value of the vehicle was Rs.2,25,000.00 applying the non-standard formula.

(2.) AGAINST the said judgement and order of the State Commission, the complainant has also preferred Revision Petition No.2/2004 contending that the State Commission ought to have taken into consideration the sum assured, i.e., Rs.3,50,000.00 before passing the impugned order. It is also contended that there was no evidence on record before the District Forum as well as the State Commission that the vehicle (Tata Sumo), owned by the complainant, was used for carrying passengers for hire or reward. In the present case, facts in brief are that the complainant was the owner of the vehicle, which was insured with the National Insurance Co. Ltd. for the period between 15.7.1998 and 14.7.1999. It is contended by the complainant that the vehicle was robbed on 16.5.1999 enroute from Jabalpur to Sagar. Someone murdered the driver and fled with the vehicle. A criminal case for murder was registered under Section 302, 394 and 201 of the Indian Penal Code. On the claim being preferred, the insurance company repudiated on the ground that there was breach of the policy condition as the vehicle was used as a taxi though the same was insured as a private vehicle.

(3.) IT is further laid down that :