ORIENTAL INSURANCE COMPANY LTD Vs. RAJNISH GUPTA

JUDGEMENT

(1.) The petitioner is an Insurance Company. It challenges the award passed by respondent No.2 Insurance Ombudsman, whereby the petitioner-Insurance Company has been held liable to pay Rs.5.92 lacs on account of damage to the vehicle which was insured for Rs.5 lacs.

(2.) Brief facts as narrated in the petition may be noticed.

(3.) Learned counsel for the petitioner submitted that under section 64VB (1) of the Insurance Act, 1938, (in short, "the Act"), the Insurance Company was liable to pay only the agreed amount for which insurance had been carried out. Reliance was placed on judgment of the Hon'ble Supreme Court in New India Assurance Company Limited v. C.M.Jaya and others, 2002 AIR(SC) 651 to submit that Insurance Company cannot be made liable to pay any amount unless the terms of the policy or the amount insured covered the same.