Before the District Consumer Dispute Redressal Commission [Central], 5th Floor ISBT Building, Kashmere Gate, Delhi
Complaint Case No.144/2022
Mohd. Ahmad s/o Aslam Khan
R/o H. No. 150, Village Neknampur
Fulari, Athsaini, Hapur, U.P. 245207 ...Complainant
Versus
Cholamandalam MS General Insurance Co. Ltd.,
Plot No. 39, 2nd Floor, Samyak Tower, Pusa Road,
Karol Bagh, New Delhi-110005 ...Opposite Party
Date of filing: 23.11.2022
Date of Order: 23 .11.2023
Quorum: Shri Inder Jeet Singh, President
Ms. Shahina, Member -Female
ORDER
Shahina, Member -Female
1.1 The instant complaint was filed by the complainant by stating that he had purchased a truck bearing registration no. UP-15DT-4794 from SJS Motors, Hapur, Uttar Pradesh on 30.01.2018 by paying the down payment and the rest of amount was financed by Tata Motors Finance Ltd (formerly known as Sbeba Properties Ltd).
1.2 The complainant initially got the truck insured from the New India Assurance Co. Ltd. vide vehicle policy bearing no. 12220031171350077877 w.e.f. 30.01.2018 to 29.01.2019. But, subsequently on 04.01.2019, the insurance policy was renewed from present OP namely Cholamandalama MS General Insurance Co. Ltd. by paying huge insurance premium of Rs. 95,533/- vide policy no. 3379/02232982/000/00 w.e.f. 30.01.2019 to 29.01.2020, having IDV as Rs. 29,70,000/-. The complainant has been using the truck to earn his livelihood.
1.3 On 08.01.2020, the truck was stolen from Mayur Vihar, Phase-I, Delhi for which FIR no. 001181 was lodged in e-Police Station, Mayur Vihar u/s 379 IPC on 10.01.2020. On 11/12.01.2020, the complainant also gave intimation of the theft to OP, which was registered as claim no. 3379298081. The OP appointed its surveyor/investigator M/s Utmost and its Sh. Rajneesh Kohli, who visited the spot, he recorded the statement of complainant as well as driver of the truck. The surveyor asked the complainant to submit the documents, thus he submitted all the documents to the surveyor but the OP failed to release the insurance amount. The police has filed its untraced report in the concerned court of Ld ACMM-01, Karkardooma, Delhi, who accepted the report by order dated 13.10.2020. The surveyor had asked further documents by email dated 11.02.2021 (which was received by the complainant on 16.02.2021) and the complainant also furnished those documents in the office of OP as per directions of surveyor. The complainant had purchased the truck [to earn his livelihood] against availing credit facility from Financer but because of theft of the vehicle, he is unable to earn and to pay the EMIs to the financing institution vis a vis the financing institution is mounting pressure upon the complainant to pay EMIs, which had further added to the woe of the complainant and he had written again on 28.06.2022 for expeditious release of amount by OP.
1.4. The complainant had made several requests to OP to settle the claim but OP did not reimburse claim amount, even complainant was not apprised of status of his claim. It is appearing that the OP has no intentions to settle the clam. There is deficiency of services on the part of OP. The complainant requests for direction to OP to pay Rs.29,70,000/- being IDV/sum insured and also interest @ 18% p.a. from 11/12.01.2020 of date of lodging claim till realization of amount, compensation Rs. 5,00,000/-, litigation costs of Rs. 51,000/- and other relief.
The complaint is accompanied with copy of purchase invoice of vehicle truck dated 30.01.2018, copy of first insurance policy issued by New India Assurance Co. Ltd., copy of insurance policy issued by OP, details of insurance cover by Financer, copy of e-FIR, copy of intimation to RTO Meerut, copy of e-mail dated 16.02.2021 for deposition of documents, copy of acknowledgment, copy of request 28.06.2022 to OP for expeditious disposal/settlement of the claim.
2. The OP was issued notice on complaint and OP had also caused appearance. The OP proposed the written statement but it was beyond statutory period, therefore, it was not taken on the record by reasoned order. Thus, there is no pleading of OP.
3. Then complainant filed his affidavit for evidence, it is detailed affidavit on the lines of complaint with all the documents filed with the complaint, those documents are Ex.CW1/1 to Ex.CW1/15..
4. At the stage of final argument, the complainant has filed written arguments and Shri Akshay Bedi, Advocate for complainant addressed oral submissions. It was requested on behalf of complainant to file case and accordingly on 20.11.2023, case law ‘Jaina Construction Company Vs the Oriental Insurance Co. [Civil appeal no.1069/2022 dod 11.02.2022] was filed in support of case of complainant that when the police was informed immediately after theft, the accused was also arrested and claim was found genuine, the insurance company could not have repudiated the claim that there was delay in informing the insurance company’.
5. We have gone through the record of the case and also considered them.
6. By considering the entire case, record and documents, detailed in paragraph no. 1 and 3 above, it is apparent that the complainant took insurance policy from the OP and during the period of insurance policy period, there was theft of truck, for which police report was lodged and OP had also appointed the surveyor. As a matter of co-incident the surveyor's report dated 8.3.2020 came on record with the proposed written statement of OP. It was inconclusive report on the ground of want of furnishing of record., there is acknowledgement dated 19.02.2021 of receipt of documents by OP (Ex.CW1/14) pursuant to surveyor letter dated 11.02.2021
The facts and documents have been proved by the complainant, showing that his total theft loss of truck, which was not settled by the OP despite receipt of record and requisitioned documents from complainant and he had no option but to file the complaint. The material proved by the complainant remained unchallenged for want of contrary evidence by the OP. It establishes the deficiency of services on the part of the OP.
7. Thus, the complainant has proved his case of non-disbursement of claim amount against the policy no. 3379/02232982/000/00 w.e.f 30.01.2019 to 29.01.2020 having sum insured/IDV of Rs. 29,70,000/-. The OP is liable to release/pay the insured sum of Rs. 29,70,000/- in lieu of theft loss of insured vehicle. However, there is no agreed rate of interest, therefore, interest @ 6% pa on the amount of Rs. 29,70,000/- from the date of filing of complaint till its realisation of amount is awarded in favour of complainant and against the OP.
The complainant also seeks compensation of Rs.5 lakhs for facing hardship and suffering, but he could not prove claim of such amount vis a vis he faced those hardships. Thus, it would justify both ends to quantify reasonable compensation of Rs. 10,000/- and accordingly it is awarded, apart from Rs. 5000/- as litigation charges in favour of the complainant & against the OP.
8. So, the OP is directed to pay sum insured of Rs. 29,70,000/- alongwith interest at the rate of 6%pa from the date of complaint till realisation of amount, besides compensation of Rs. 10,000/- and costs of Rs. 5000/- to the complainant, payable by OP to the complainant within 42 days from the receipt of this order [ but subject to further directions being given], failing which the amount of Rs. 29,70,000/- shall be payable with interest of 8% pa.
9.1 The complainant has proved particulars of truck issued by transport department (Ex CW1/9), showing name of Financer -Tata Motor Finance Limited. It is also case of complainant, that subject truck was financed by Tata Motors Limited. The truck was under hypothecation being lien to Tata Motor Finance Limited, it has insurable interest and first right to receive the amount of hypothecated vehicle vis a vis the complainant has also asserted that he could not pay EMIs.
9.2 Therefore, OP is directed to release the amount to Tata Motor Finance Limited, which Tata Motor Finance Limited deserves to receive as outstanding amount, subject to furnishing further details of actual balance amount and requisite documents, which Tata Motor Finance Limited will cooperate in this regard. The excess amount, if any left with OP [after paying amount to Tata Motor Finance Limited], shall be paid by the OP to the complainant. The Tata Motor Finance Limited will inform both the complainant and OP with statement in writing of balance amount on account of complainant, immediately on preparing the same. Tata Motor Finance Limited & the OP will also inform the complainant immediately on payment tendered by OP and received by Tata Motor Finance Limited .
The OP & the Tata Motor Finance Limited will cooperate by furnishing such details within six weeks (42 days) from the receipt of this order, requisite documents to OP and of balance amount payable to Tata Motor Finance Limited, since the vehicle was under hypothecation with Tata Motor Finance Limited. Further, the complainant will also cooperate to furnish required documents as per law, if so asked by them in writing.
10. OP is also directed to pay the amount within six weeks (42 days) from the date of receipt of details from the complainant and/or the Tata Motor Finance Limited under acknowledgment. In case amount is not paid within six weeks from the date of such details, the OP will be liable to pay interest at the rate of 8% per annum (in place of 6%pa) on amount of Rs. 29,70,000/- from date of complaint till its realization.
11. In case complainant and Tata Motor Finance Limited do not furnish further details of required of amount and other requisite documents within 42 days, then such period of six weeks or other longer period will be excluded, while computing interest @ 6% pa, or 8% pa as the case may be.
12. Announced on this 23rd November, 2023.
13. Copy of this Order be sent/provided forthwith to the parties free of cost as per rules for necessary compliance. The complainant will forward copy of this order to the Financer for appropriate compliances.
[ Shahina] [Inder Jeet Singh]
Member (Female) President
