Chandigarh

DF-II

CC/599/2023

ALISHKA CHAUHAN - Complainant(s)

Versus

ICICI LOMBARD GENERAL INSURANCE - Opp.Party(s)

JAGAN NATH BHANDARI

19 Apr 2024

ORDER

 

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION-II,

U.T. CHANDIGARH

 

Consumer Complaint  No	:	599 of 2023
Date  of  Institution	:	22.12.2023
Date   of   Decision	:	19.04.2024

 

 

 

 

 

Alishka Chauhan, aged 30 years, D/o Sh.Mohinder Singh Chauhan, Permanent R/o House No.1014, Deep Complex, Hallo Majra, Chandigarh

 

             …..Complainant

 

Versus

1]  ICICI Lombard General Insurance Company Limited, Registered Office Address: ICICI Lombard House, 414 Veer Savarkar Marg, Near Siddhi Vinayak Temple, Prabhadevi, Mumbai 400025

2^nd Address:- 4^th Floor, The Statement Building, Phase-1, Plot No.149, Industrial Area, Phase-I, Plot No.149, Chandigarh 160002

2]  Mr.Nitin Koundal, Manager, ICICI Lombard General Insurance Company Limited, Branch Office -  4^th Floor, The Statement Building, Phase-1, Plot No.149, Industrial Area, Phase-I, Plot No.149, Chandigarh 160002

     ….. Opposite Parties

BEFORE:  MR.AMRINDER SINGH SIDHU,       PRESIDENT

                MR.B.M.SHARMA,                 MEMBER

                               

Argued by:-     Sh.Jagan Nath Bhandari, Counsel for complainant Sh.Kartik, Adv. proxy for Sh.Kaveesh Keilay, Counsel for OPs No.1 & 2.

 

ORDER BY AMRINDER SINGH SIDHU, M.A.(Eng.),LLM,PRESIDENT

 

1.     The complainant has filed the present complaint pleading that her Car bearing Regd.No.CH-01-CB-9005 insured with the OP Insurance Company for the period from 01.09.2021 to 31.08.2022 for a sum insured of Rs.11,72,000/- (Ann.C-3) was stolen on 23.05.2022 while the same was parked in SD College, Ambala, where she went to attend her CA Examination.  She called the police and tried to locate the car but could not trace out. Accordingly, FIR No.0317, dated 23.05.2022 was registered by the Police at Police Station Ambala Cantt, Haryana under Section 379 of IPC (Ann.C-4) and the complainant also informed the OP Insurance Company regarding the theft and the surveyor Sh.Gurpreet Singh, appointed by the OP was supplied all requisite documents as well as information as desired by him as well as OP Insurance Company.  The police also submitted the untraced report regarding the vehicle in question, which was accepted by the court of ld.Chief Judicial Magistrate, Ambala on 21.2.2023 (Annexure C-14). The claim along with the relevant documents was filed with the OP Company but the same was not released by the OPs and it was closed vide letter dated 31.07.2023 on account of non-submission of the documents.  It has been alleged that the complainant had submitted all the documents as desired by the OPs.  Alleging that the aforesaid acts of omission and commission on the part of the OPs amount to deficiency in service and unfair trade practice, the complainant has filed the instant complaint seeking directions to the OPs to release the claim along with interest, compensation and litigation expenses.

 

2.     After service of notice upon the OPs, they appeared before this Commission and filed their written version on 02.02.2024.
3.     Thereafter, the OPs have filed Misc. Application No.182 of 2024 on 21.03.2024 for permission to file amended reply and along with it amended written version has also been filed by the OPs. 
4.     In view of the grounds mentioned in the application and for just decision of the case, we allow the above said Misc. Application No.182 of 2024 dated 21.3.2024 of the OPs and accordingly taken on record the amended written version along with documents/evidence.
5.     The OPs No.1 & 2 in their amended written version while not disputing the facts regarding the theft of the vehicle during the existence of the policy and registration of the FIR, has stated that the claim of the complainant was closed due to her failure to provide the required document despite reminders.  It is also stated that the untraced report has not attained finality and the same is under challenge. It is also stated that the complainant failed to supply the keys of the vehicle and failed to exercise due care as per terms & conditions of the policy.  The remaining allegations have been denied, being false. Pleading that there is no deficiency in service or unfair trade practice on their part, the OPs prayed for dismissal of the complaint.
6.     Parties led evidence in support of their contentions.
7.     We have heard the Counsel for the parties and have gone through the documents on record.
8.     After going through the documents on record as well as pleadings of the parties, it is observed that the insured car of the complainant was stolen during the policy period on 23.05.2022 and an FIR No.0317, dated 23.05.2022, dated 23.05.2022 at Police Station Ambala Cantt. (Haryana) was registered (Ann.C-4) in this regard.  The OPs have not disputed that the car earlier insured with Bharti AXA General Insurance Company (Ann.C-3) has been merged with OP Insurance company-ICICI Lombard. It is also observed that the OPs appointed Surveyor to investigate the claim on receipt of theft information from the complainant. Further the Untraced Report (Ann.C-14) in respect of the theft case of the car in question, dated 21.02.2023 accepted by the Court of Ld.Additional Chief Judicial Magistrate, Ambala has also been submitted to the OPs, hence the pleas of OPs that the said Untraced Report has not attained finality is untenable. Therefore, it is held that the non-settlement of the genuine claim by the OPs despite issuance of Untraced Report by the Court of Ld.Additional Chief Judicial Magistrate, Ambala in respect of the insured vehicle in question, amounts to deficiency in service on the part of OPs.
9.     In an identical case of theft of the vehicle, the Hon’ble Supreme Court of India titled as Gurmel Singh Vs. Branch Manager, National Insurance Co. Ltd., passed in Civil Appeal No.4071 of 2022,decided on 20.02.2022 directed the Insurance Company to pay insurance amount of Rs.12.00 lakhs along with interest from the date of submitting the claim.
10.     It is usual with the insurance company to show all types of green pastures to the customer at the time of selling insurance policies, and when it comes to payment of the insurance claim, they invent all sorts of excuses to deny the claim. In the facts of this case, ratio of the decision of Hon’ble Apex Court in case of Dharmendra Goel Vs. Oriental Insurance Co. Ltd., III (2008) CPJ 63 (SC) is fully attracted, wherein it was held that, Insurance Company being in a dominant position, often acts in an unreasonable manner and after having accepted the value of a particular insured goods, disowns that very figure on one pretext or the other, when they are called upon to pay compensation.  This ‘take it or leave it’, attitude is clearly unwarranted not only as being bad in law, but ethically indefensible.  It is generally seen that the insurance companies are only interested in earning the premiums and find ways and means to decline claims.
11.     In similar set of facts the Hon’ble Punjab & Haryana High Court in case titled as New India Assurance Company Limited Vs. Smt.Usha Yadav & Others 2008(3) RCR (Civil) Page 111 went on to hold as under:-

“It seems that the insurance companies are only interested in earning the premiums and find ways and means to decline claims. All conditions which generally are hidden, need to be simplified so that these are easily understood by a person at the time of buying any policy.  The Insurance Companies in such cases rely upon clauses of the agreement, which a person is generally made to sign on dotted lines at the time of obtaining policy. Insurance Company also directed to pay costs of Rs.5000/- for luxury litigation, being rich.

12.     In view of the above discussion, we are of the opinion that the OP-Insurance Company has committed deficiency in service by not releasing the genuine claim of the complainant. Consequently, the present complaint deserves to be partly allowed and the same is accordingly Partly Allowed against the OPs. The OPs are directed to pay Insured Declared Value (IDV) of the vehicle i.e. Rs.11,72,000/- lacs to the complainant along with interest @6% p.a. after one months period from the date of Untraced Report dated 21.02.2023 till the date of its actual payment to the complainant.
13.     This order be complied with by the OPs within ninety days from the date of receipt of its certified copy.
14.     The pending application(s) if any, stands disposed of accordingly.
15.     Certified copy of this order be sent to the parties, as per rules. After compliance file be consigned to record room.

Announced

19.04.2024                                                                         

Sd/-

 (AMRINDER SINGH SIDHU)

PRESIDENT

 

Sd/-

(B.M.SHARMA)

MEMBER