BANWARI LAL SHARMA vs New India Assurance Co. Ltd

THERE was an accident to a truck in the year 1987. The truck was insured with the New India Assurance Company, respondent No. 1. A claim was lodged, but the claim was not settled by the Assurance Company in time. As usual the Assurance Company caused delay in settling the claim and making payment. Ultimately on 29.5.1992 payment was made and the receipt of payment shows inter alia as follows : "I agree to accept in full satisfaction and discharge of my claim upon the Company under the policy in respect of full and final settlement of our demand claim of vehicle No. TRL-1908 A/C Mr. B.L. Sharma, date of accident 24.1.1987". This claim has been made on the ground that there was deficiency in service in making the payment in time and there was inordinate delay of 5 years in making payment and as such, he is entitled to compensation. Though we have all the sympathy with the claimant, but in view of the position of law as settled by the National Commission in I (1992) CPJ page 41 we are not in a position to grant compensation. The same question arose before the National Commission and the National Commission pointed out that once the claimant gives a valid discharge in the claim, settled by the Insurance Company, there can be no deficiency in service.

THAT being position of law, this claim petition shall stand rejected. But at the same time we deprecate the conduct of New India Assurance Company who behaved in such a laconic manner. Petition dismissed.