NEW INDIA ASSURANCE COMPANY LIMITED Vs. GAJULA FRANKLIN

JUDGEMENT

(1.) This is an appeal preferred by the opposite party Insurance Company against the order of the District Consumer Forum, Karimnagar, directing it to pay Rs.70,000/- with interest at 9% per annum and costs of Rs.500/-.

(2.) The case of the complainant in brief is that his Ambassador car which he was using and was also hiring to Singareni Colleries Company Limited, Bellampally for an amount of Rs.10,000/- per month, met with an accident on 12.09.2002 while he was proceeding to Nizamabad from Bellampally. In fact the car was insured with the appellant, covering the period from 29.08.2002 to 28.08.2003. On report, the policy registered a case in Crime No.157/2002 under Sec.279 IPC. The car was heavily damaged. He got it repaired by incurring an amount of Rs.51,233/-. In fact he lost income of Rs.10,000/- per month. When he sent the claim, the same was not settled. Therefore, he got issued a legal notice followed by complaint claiming the above said amounts.

(3.) The Insurance Company resisted the case. While admitting the issuance of policy, it alleged that the claim was highly exaggerated. On receipt of information it had appointed a surveyor, who in turn visited the spot, assessed the damages at Rs.8,840/-. It had also sent a cheque for the said sum through a letter dated 06.11.2002. However, the complainant refused to receive the same. The complainant was not entitled to any of the amounts claimed and that too without any basis and therefore, prayed for dismissal of the complaint.