ROYAL SUNDARAM ALLIANCE INSURANCE CO. LTD. Vs. GUDA VENKATA NARASIMHARAO
LAWS(APCDRC)-2008-11-1
ANDHRA PRADESH STATE CONSUMER DISPUTES REDRESSAL COMMISSION
Decided on November 27,2008

ROYAL SUNDARAM ALLIANCE INSURANCE CO. LTD. Appellant
VERSUS
Guda Venkata Narasimharao Respondents

JUDGEMENT

M.SHREESHA, J. - (1.) AGGRIEVED by the order in C.D. No. 83/2004 on the file of District Forum, Srikakulam, opposite parties 1 and 2 preferred this appeal.
(2.) THE brief facts as set out in the complaint are that the complainant purchased a lorry Ashok Leyland 2002 Model which was financed by Sundaram Finance. The vehicle was insured with the opposite parties for an amount of Rs.10,00,000, the policy being effective from 20.6.2002 to 19.6.2003. The insured's vehicle met with a fire accident on 26.4.2003 while coming from Bangalore to Visakhapatnam and immediately the same was informed to the opposite parties and a F.I.R. was also registered at Parawada Police Station. The relevant documents were submitted along with the claim form for an amount of Rs.10,00,000 though the vehicle is worth Rs.11,00,000. In spite of several requests, opposite parties did not settle the claim amount and there was immense financial pressure from Sundaram Finance to pay the balance amount. Opposite parties insisted for settlement of the claim at 7.3 lakh towards full and final settlement and the complainant agreed for the same as he had no other alternative as he was suffering from financial loss and penal interest was mounting day -by -day. Sundaram Finance on 21.11.2003 sent a telegram stating that due to mistake of opposite parties, they are compensating an amount of Rs.18,650 to the complainant. Subsequently, the complainant got issued a legal notice on 5.4.2004 demanding the opposite parties to pay the balance insured amount of Rs.2,51,350. Opposite parties did not choose to reply, hence the complaint seeking directions to the opposite parties to pay Rs. 2,51350 and also interest on the settled amount of Rs. 7.3 lakh from 1.5.2003 to 21.11.2003 together with compensation of Rs. 1,00,000 and other costs.
(3.) OPPOSITE parties filed counter stating that the surveyor's report was inconclusive and he was not able to ascertain the reasons for the fire and the entire vehicle was damaged in the accident. They admitted to the policy amount of Rs.10,00,000 but denied that they pressurized the complainant to settle for a lesser amount of Rs. 7.30 lakh in full and final satisfaction. The complainant himself vide letter dated 20.8.2003 accepted the sum of Rs. 7.30 lakh towards final settlement and the opposite parties also deny that they had ever sent a telegram to Sundaram Finance on 21.11.2003. Having received Rs. 7.30 lakh towards full and final settlement, the insured cannot now claim Rs. 2,51,350 balance and therefore there is no deficiency of service on their behalf. The District Forum based on the evidence adduced i.e. Exs. A1 to A16 and B1 to B9 allowed the complaint directing opposite parties 1 and 2 to pay Rs. 2,20,000 to the complainant with interest at 12% p.a. from 1.5.2003 till the date of realization and also pay interest at 12% p.a. on Rs. 7.3 lakh from 1.6.2003 till 21.11.2003 together with compensation of Rs. 5,000 including litigation expenses of Rs. 500.;


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