UNITED INDIA INSURANCE CO LTD Vs. ASHOK KUMAR DASH

JUDGEMENT

(1.) WE find that there is substance in the contention raised by the Appellant that it was only just and proper that the merits of the controversy between the parties should be left to be determined by arbitration under Condition 8 of the Policy of Insurance. The State Commission should not have proceeded to record the finding as to whether there was delay or deficiency on the part of the Insurance Company, because these are essentially matters which will have to be decided by the arbitrator while considering the merits of the claim put forward by the Complainant. The award of the State Commission of a sum of Rupees Ten Thousand and odd as compensation for delayed payment on settlement was therefore not just and proper and the question as to whether there was delay or deficiency and whether the Complainant is entitled to compensation and if so, how much on this account, should have been left for the arbitrator to determine.

(2.) THE findings entered by the State Commission to the effect that there was delay or deficiency on the part of the Insurance Company and the Insurance Company is liable to compensate the Complainant for such delay and deficiency will therefore stand vacated. It is, however, made clear that the only ground for vacating these findings is that these matters should not have been decided by the State Commission but should have been left for the determination of arbitrator. The arbitrator to be appointed will go into these questions and enter his findings thereon uninfluenced by any of the observations in the order of the State Commission. Since we have indicated that the State Commission was not justified in awarding any compensation in respect of the delay, the Complainant is entitled to receive forthwith from the Insurance Company the sum of Rs. 49,459.00payable as per the second Survey Report and it is left to the arbitrator to decide whether any further amount and if so, how much is payable to the Complainant by way of reimbursement of the loss sustained by him. The order of the State Commission is modified as above and the appeal is allowed to that extent. We direct that the arbitrator shall be appointed by the Insurance Company within a period not exceeding one month from today. The amount of Rs. 49,459.00 shall be paid by the Insurance Company to the Complainant within a period of four weeks from today. No costs.