Delhi

North

RBT/CC/225/2022

RAMESH KUMAR - Complainant(s)

Versus

UNITED INDIA INSURANCE CO LTD - Opp.Party(s)

01 Apr 2023

ORDER

District Consumer Disputes Redressal Commission-I (North District)

[Govt. of NCT of Delhi]

Ground Floor, Court Annexe -2 Building, Tis Hazari Court Complex, Delhi- 110054

 

RBT/CC/225/2022

In the matter of

Ramesh Kumar

S/o Sh. Mool Chand

R/o, A-4/70, Sultanpuri,

Delhi-110086                                                                        …Complainant

 

Versus

United India Insurance Company Ltd.

Through its Branch Manager

Ist floor, Udyog Nagar, Metro Station

Near Peeragari, New Delhi-110041                                   …Opposite Party

                                                                  

ORDER
01/04/2023

Ms.Harpreet Kaur Charya, Member

The present complaint has been received by way of transfer vide order No.F.1/SCDRC/Admn./Transfer/2022/330 dated 16/04/2022 of Hon’ble Delhi State Consumer Dispute Redressal Commission where the matter was transferred from DCDRC-V (North West) to this Commission. 

1.      The present complaint has been filed by Sh.Ramesh Kumar, the complainant against the United India Insurance Company Ltd., OP with the prayer for the directions to pay Rs.3,15,000/- with 18% interest, compensation of Rs.5,00,000/- on account of mental agony and harassment and Rs.25,000/- as cost of litigation.

2.        Facts necessary for the disposal of the present complaint are that the complainant being the owner of Toyota-Innova bearing Registration No.HR 55 K 5109 was using it for the purpose of earning his livelihood by means of self employment. 

3.      The said vehicle was insured with OP vide policy No.040 201311 6P11 6429845 for a period from 15/03/2017 to 14/03/2018 with the IDV of Rs.3,15,000/-. On the night of 23/12/2017, the vehicle suddenly stopped near Chhat Pooja Ghat, Kailash Vihar, Panshali Road, Rohini, Sector-32.  The complainant tried to restart the vehicle but there was some sparking, so that complainant went to search for the mechanic. 

4. It has been stated that when the complainant came back with the mechanic, it was found that the vehicle was completely burnt.  Police department and OP were immediately informed. Claim for total loss along with all the documents was filed with OP.  Thereafter, a surveyor was appointed by OP and the complainant was asked by the surveyor to sell the burnt vehicle as scrap.  On 29/03/2018, the burnt vehicle was sold for Rs.18,000/- to one namely, Sh. Arvinder Singh.

5.      A Repudiation letter dated 18/04/2018 was issued by OP.  The claim No.0402013117C050140001 was rejected on the ground of violation of condition No.4 of the policy.  It has been further alleged that the officials of OP were not only rude but also failed to discharge their duty in diligent manner.

6.      Feeling aggrieved by the repudiation of the claim the complainant has alleged deficiency in services and unfair trade practices on the part of OP.

7.      The complainant has annexed the Policy document as Annexure A-1 and A-2, Certificate of registration as Annexure A-3, certificate of fitness as Annexure A-4, information to Police Station: S. B. Dairy as Annexure B, affidavit of Sh. Arvinder Singh (buyer of the scraped insured vehicle) as Annexure C-2, photographs of the insured vehicle as Annexure D-1 to Annexure D-12 and repudiation letter dated 18/04/2018 as Annexure E with the complaint.

8.     Notice of the present complaint was served upon OP.  Thereafter, the written statement was filed on their behalf, where they have taken several pleas in their defence such as the complaint was false and frivolous; there was concealment of material facts; the complainant had violated the terms and condition therefore the repudiation was justified. 

9.     It has been submitted that there was breach of clause No.4 of terms and conditions of policy which is reproduced as under (sic):

“ The insured shall take all reasonable steps to safeguard the vehicle from loss or damage and to maintain it in efficient condition and the company have at all time free and full access to examine the vehicle or any part thereof or any driver or employee of the insured.in the event of any accident or breakdown, the vehicle shall not left unattended without prior precaution being taken to prevent further damage or loss and if the vehicle being driver before the necessary repair are effected any extention of the damage or any further damage to the vehicle shall be entirely at the insured own risk.”

 

It was submitted that the insured had left the subject vehicle fully unattended and no fire brigade had been called and no efforts were made by the insured to minimise the loss, hence, the OP was not liable to pay the claim.

10.    It has been denied that the surveyor had asked the complainant to sell the burnt vehicle in scrap.  Rest of the contents of the complaint have also been denied with the prayer for dismissal of the complaint with cost.

11.    Though, in para No.3 of their written statement, OP has stated that the copy of terms and conditions of the policy in question are annexed as Annexure R-1, however, not even a single document have been filed with their reply.

12.      Rejoinder to the written statement of OP-1 was filed by the complainant, where the contents of the written statement have been denied.

13.      Evidence by way of affidavit was filed by the parties. Sh. Ramesh Kumar, the complainant has got himself examined and has reaffirmed the content of the complaint.  He has got exhibited the insurance Policy, registration certificate, fitness certificate and Ext. CW-1/A-1 to A-4.  The intimation to police department is Ext.CW-1/B.  The complainant has also got exhibited the affidavit of Sh. Arvinder Singh, the purchaser of the burnt vehicle as Ext.CW-1/C-1, C-2 along with photographs of the vehicle as Ext.CW-1/D-1 to D-12.  The repudiation letter dated 18/04/2018 is Ext.CW-1/E.

14.      OP has got examined Sh. Jagdish Narang, Deputy Manager on their behalf.  The submissions in the written statement have been reiterated. Again, they have relied upon the copy of terms and conditions of the policy in question.  However, nothing has been filed along with the evidence affidavit. 

15.      We have heard the submission made by the Ld. Counsel for the complainant and Ld. Counsel for OP and have perused the material placed on record..   

16.    The complainant is aggrieved by the repudiation of his claim for the vehicle insured with OP, which has been rejected by OP vide repudiation letter dated 18/04/2018 (Ext.CW-1/E)  on the pretext of breach of policy terms and condition No.4.  However, no policy terms and conditions and surveyor report has been filed by OP. 

17.    The complainant has placed on record the DD entry No.13A, PS: S.B.Dairy, dated 24/12/2017, thus it is clear that there was no delay in intimation to the police authorities (Ex.CW1/B) at the same time Ex.CW1/A-4, which is the certificate of fitness with validity up to 02/04/2018.  The complainant has also filed the photographs of the subject vehicle (Ex.CW1/D-1to D-12) as per which the insured vehicle is completely burnt. 

18.      As, OP has neither filed the policy terms and condition nor the surveyor report, we did not have the opportunity to go through the said documents. In the absence of the said documents we cannot decide whether there was breach of policy terms and conditions by the complainant. Therefore, an adverse inference is to be drawn against them. 

19.      In the absence of any concrete defence on the part of OP and material placed on record by the complainant in support of his allegation, we hold that the rejection of the claim by OP is arbitrary, and thus it amounts to deficiency in service. 

Therefore, in the facts and circumstances, of the present complaint and in the interest of justice, we direct OP:

1. To pay Rs.2,97,000/- (IDV of Rs. 3,15,000/- minus Rs.18,000/- received by the complainant on account of sale of the vehicle as scrap) along with interest @9% p.a. from the date of filing of the present complaint i.e. 04/06/2018 till realization.
2.  We further award a compensation of Rs.45,000/- on account of the mental agony and harassment, inclusive of litigation expenses. 

The order be complied within 30 days from the date of receipt of this order.  In case of non-compliance, OP shall be liable to pay interest @12% p.a. on Rs.3,42,000/-(Rs.2,97,000/-Plus 45,000/-) from the date of order till realization. 

Office is directed to supply the copy of this order to the parties as per rules.  Order be also uploaded on the website.  Thereafter, file be consigned to the record room.

 

 

(Harpreet Kaur Charya) Member

(Ashwani Kumar Mehta) Member

 

                            

 

                                             (DivyaJyotiJaipuriar)

                                                                    President