B M RAJASHEKARAIAH Vs. ORIENTAL INSURANCE CO LTD

JUDGEMENT

(1.) -The complainant purchased a goods vehicle bearing No. CNU 3159 TATA 1987 Model which was comprehensively insured with respondent w.e.f. 5.6.1990 to 4.6.1991 vide Policy No. 363291. The vehicle met with an accident on 5.4.1991 at about 4.30 p.m. near Naikanderhalli within the limit of Doddaballapur Rural Police Station. The vehicle was damaged heavily and 4 employees who were in the vehicle sustained injuries.

(2.) Surveyor appointed by respondent assessed the loss to the extent of Rs. 75,910. However, on the basis of depreciation that amount was reduced to Rs. 36,750. The report was submitted on 20.7.1991 to the opposite party. Complainant received a letter dated 20.2.1993 wherein his claim was repudiated by respondent on the ground of having violated the conditions of the policy by carrying unauthorised passengers in the lorry at the time of accident. Complainant sent a legal notice but opposite party failed to settle the claim.

(3.) Hence, complaint was filed before District Forum praying for Rs. 75,910 as assessed by the surveyor with an interest @ 18% p.a. w.e.f. 5.4.1991. Respondents in their reply contended that the vehicle was used for carrying passengers and fare was collected from them. Further the irregularity was committed by the owner himself and not by any employee in the course of employment. Respondent also raised the plea of limitation. District Forum vide its order dated 2.3.1994 partly allowed the complaint and directed the Insurance Company to pay a sum of Rs. 31,000 with interest thereon.