NATIONAL INSURANCE CO LTD Vs. ANI LAMBA

JUDGEMENT

(1.) This first appeal arises out of the order of the State Consumer Disputes Redressal Commission, Haryana, whereby the State Commission allowed the appeal. The facts in brief which led the complainant to approach the State Commission are as follows :

(2.) The complainant got his vehicle, Ford Escort Diesel car, insured with the respondent Insurance Company for a sum of Rs. 6 lakhs and paid a premium of Rs. 19,903/-. The vehicle met with an accident on 22.1.1999 which fact was brought to the notice of Insurance Company on the same day. The opposite party asked the complainant to take the vehicle to a workshop in Chandigarh for proper survey which the complainant did at his own cost where the Surveyor examined the damaged vehicle and asked the workshop people to prepare an estimate of the damaged vehicle. The workshop people submitted the estimate at Rs. 7,17,511/-. The complainant thereafter submitted the claim with the Insurance Company for payment of the insured amount of Rs. 6 lakhs. As is clear from the order of the State Commission, the Insurance Company neither repaired the vehicle nor paid the insured amount for getting the vehicle repaired. Dissatisfied with the attitude of the Insurance Company the complainant approached the State Commission.

(3.) In response to the notice, the Insurance Company filed its reply and denied any deficiency on its part. The contention of the Insurance Company is that it had insured the vehicle for Rs. 6 lakhs and the liability of the Insurance Company was based on law of indemnity and also that the sum insured was not the benchmark for payment of the claim. It is also contended before the State Commission that no spot survey was conducted by the insured in spite of heavy damages suffered by the vehicle during the accident. However vide letter dated 13.3.2000 the Insurance Company approved the claim for Rs. 3,50,000/- subject to deposit of salvage with the Insurance Company, registration certificate of the vehicle to be transferred in the Company's name, original policy of the vehicle was to be submitted by the complainant, discharge voucher duly signed by the complainant are to be deposited with the Insurance Company.