MANSHI ESTATES PVT. LTD. vs NEW INDIA ASSURANCE CO. LTD.

THE petitioner is one M/s. Manshi Estates Pvt. Ltd. It has instituted the present case against the New India Assurance Co. Ltd. claiming compensation for a total sum of Rs. 7,24,310/-. Out of this amount, the amount of damage on total loss basis of the car comes to Rs. 4,53,000/-.

THE case of the petitioner is that it had insured the car bearing No. WB-02/D-2849 with the opposite party for the I.E. value of Rs. 4,53,000/-. THE insurance coverage was for the period from 24.2.1997 to 23.2.1998. During the coverage of the said policy the said car met with an accident on 2.9.1997 at about 10 p.m. over Vidya Sagar Setu and as a result the occupant of the car was seriously injured and the car was highly damaged, ram shackled and turned into a junk. An intimation was sent to the Insurance Company and later a claim was lodged along with an independent and neutral estimate of damage report prepared by M/s. Jalan Distributors of 23K, Radha Madhav Dutta Lane, Jora Mandir, Beliaghata, Calcutta - 700010. Subsequently, the opposite party appointed a Surveyor who surveyed the damaged car at the garage of M/s. Jalan Distributors. THE petitioner on different occasions sent letters to the opposite party claiming compensation but to no effect. But subsequently on 12.1.1999 the opposite party sent a letter to the petitioner stating inter alia to settle the claim by paying off the depreciated value of the damaged parts of the said vehicle on the basis of report of Mr. T.K. Banerjee, a Surveyor appointed by them. According to the petitioner the survey report is defective, incomplete and prepared upon conjecture and surmise. THE said car is lying in the garage and a monthly rate of Rs. 1,000/- is being paid from 2.9.1997. According to the petitioner the car is beyond repair and cannot be put to use and as such the loss may be construed as total loss. THE opposite party having failed to pay the amount of claim the petitioner has brought this action. The O.P. has filed a written objection wherein it has been stated that they are prepared to settle the claim as per the estimation and the Survey Report. It has been stated that the estimation as forwarded by the claimant is acceptable to them. It appears that M/s. Jalan Distributors has estimated the cost of repair of the car at Rs. 3,45,117.73. During hearing it transpired that the Insurance Company is willing to pay the amount in full satisfaction of the claim of the petitioner. They however dispute that the car has gone beyond repair and as such the assessment of the claim should be done on "total loss basis". The Insurance Company maintains that the complainant having declined to settle the case as proposed by them, they are not liable for the subsequent loss and damages arising out of such refusal. Learned Counsel for the opposite party submits that the Insurance Company is still willing to settle the case for Rs. 3,45,117.73 as was assessed by M/s. Jalan Distributors subject to the condition that the complainant must first withdraw the case.

Having heard the learned Counsels for the parties we pass an award in favour of petitioner for a total sum of Rs. 3,45,117.73 for the loss arising out of the accident to the car. The Insurance Company is directed to make payment of the amount within 3 months from date of this order failing which the amount of award will carry interest @ 10% per annum till actual payment. With this observation the case be disposed of. Ordered accordingly.