HARBHAJAN SINGH Vs. NATIONAL INSURANCE COMPANY LIMITED

JUDGEMENT

(1.) The short question involved in this appeal is as to whether repudiation of the claim by the Insurance Company is arbitrary or not. The District Forum dismissed the complaint holding the repudiation to be valid vide order dated October 10,1996 that Harbhajan Singh, complainant, has filed this appeal. Harbhajan Singh purchased an insurance policy from National Insurance Company covering risk of his tractor. The policy commenced from October 31,1990 and it was for an year. The tractor having been stolen on the night of June 16th and 17th of 1991, the police was informed on June 25,1991. The Bank from whom loan had been taken (Punjab National Bank) was informed, who consequently informed the Insurance Company. A Surveyor was appointed who made his report dated July 18,1995 on the basis of which the Insurance Company repudiated the claim on August 14, 1995. Hence, District Forum was approached by the complainant claiming compensation. The Insurance Company took up the plea that the repudiation was valid and based on material collected. This plea found favour with the District Forum and the complaint was dismissed.

(2.) We have heard Counsel for the parties and find force in this appeal. When claim is made before the Insurance Company for the loss suffered on account of theft of the insured articles, the Insurance Company, of course, is called upon to determine if actually theft had taken place for which claim is lodged and if so, how much loss the complainant had suffered. On determination of these questions, the Insurance Company is either to repudiate the claim or settle the same. In the present case, vide letter dated August 14, 1995, the Insurance" Company repudiated the claim. In support thereto, reliance was placed on the report of the Surveyor M/s. Puri Sons Surveyors Private Limited dated July 18, 1995. We have gone through the report in entirety. The gist of the report is as under :

(3.) Initially in the FIR 256 of 1991 dated June 17,1991, the actual date of commission of theft was stated to be January 8,1992. This date was subsequently got amended to June 14,1991. As per statement of Harbhajan Singh, complainant, the theft occurred on June 14,1991 when some terrorists, 6-7 in numbers duly armed with weapons intruded into his house and took the keys of the tractor and drove it away/ft is further mentioned that earlier the terrorists had taken away his tractor and returned the same. It was thereafter 10-15 days that again they came and took away the tractor. Thereafter the same was not recovered by the Police.