Decided on August 11,2010

Oriental Insurance Company Ltd And Ors Appellant
Roshan Lal Khimta S/O Balak Ram Respondents


- (1.) BOTH the above appeals are directed against the order passed by District Forum, Shimla, in Consumer Complaint No.296/2006 on 7.10.2009, as such both these appeals were heard together and are being disposed of by this common order.
(2.) ADMITTED facts giving rise to both these appeals are, that Roshan Lal Khimta, hereinafter referred to as the 'complainant', was the owner of vehicle bearing Registration No. HP -63 -0674. It met with accident on 24.3.2006 when it was insured under a valid policy of insurance with the Oriental Insurance Company Ltd., hereinafter referred to as the 'OP'. On receipt of information regarding accident, OP appointed Surveyor to assess the loss caused to the vehicle. His report is Annexure R.3, dated 1.6.2006. According to this report, net liability on total loss basis was to the extent of Rs.5,00,000/ - and he recommended claim to be settled on 'net of salvage basis' at Rs.3,24,000/ -. as according to him, salvage value of the vehicle was Rs.1,75,000/ -. In this context, it may be appropriate to notice that while submitting his report, Annexure R.3, Surveyor had also obtained consent from the complainant wherein he had agreed to accept Rs.3,25,000/ - on net of salvage basis as well as to retain the salvage with him. This consent letter is Annexure R.5, dated 4.5.2006. What is its significance, we shall deal with it later on.
(3.) WHEN the claim of the complainant was not settled, he filed Consumer Complaint No.296/2006, which has been allowed in the following terms: - "8. Since, the Loss Assessor in his report Annexure R.3, dated 01.06.2006, has assessed the loss at Rs.3,24,000/ -, on net of salvage loss liability. Therefore, his assessment qua loss, is, to be accepted, having remained un -repulsed or un -benumbed on behalf of the complainant. Resultantly, in terms of the amount assessed and quantified, by the Loss Assessor, we direct that the OP -Company shall indemnify the complainant to the extent of Rs.3,24,000/ -, i.e. the OP -Company shall pay 75% of Rs.3,24,000/ - to the complainant along with interest at the rate of 9% per annum, from the date of filing of the complaint, i.e. 21.04.2008, till actual payment is made. In addition to this, the OP -Company shall also pay litigation cost of Rs.3500/ -. This order shall be complied with, by the OP -Company within a period of forty five days, after the date of receipt of copy of this order". In the aforesaid background, appeal has been filed by the OP with a view to allow the appeal and consequently dismissing the complaint by setting aside the impugned order; at the same time Appeal No.90/2010 has been filed by the complainant to allow his appeal thereby modifying the impugned order and directing the OP to pay Rs.5,00,000/ - alongwith interest, compensation, cost etc.;

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