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Judgment
THE present petition has been filed claiming compensation for the vehicle which met with an accident and also interest @ 14% per annum.
THE complainant is the owner of the vehicle No. AXK-3198 and it was purchased under hire-purchase agreement with M/s. Deepak Finance Company, Respondent 3. THE vehicle was duly insured with the Insurance Company, Respondent 1 and Respondent 2 is the Divisional Manager of the said Company. THE vehicle met with an accident on 10.9.89 and accordingly the present claimant filed the claim before the Respondent on 20.4.90. THE amount claimed for repairing of the vehicle (Truck) was Rs. 65086.40. By letter dated 31.1.92 the complainant was informed that as the vehicle was carrying unauthorised passengers, the claim cannot be considered. Copy of the said letter is available at Annexure-2 to the present petition. By the said letter the complainant was asked to give an undertaking to indemnify the Insurance Company against all third party claim cases pending before Motor Accident Claims Tribunal or any other claim that might arise. The claim has not yet been settled. Hence the present petition.
In the written objection filed on behalf of the Insurance Company only plea that has been taken is that the vehicle in question carried unauthorised passengers at the material time of accident which amounted to breach of limitation as to use clause of the policy. The amount claimed by the complainant has not been disputed so also the accident. In the written objection a Circular No. 43/91 dated 6.12.91 has been annexed.
HEARD Mr. Sahewalla, learned Counsel for the complainant and Mr. A.C Mahanta, learned Standing Counsel for the Insurance Company. According to Mr. Sahewalla, the Circular dated 6.12.91 vide Annexure-I to the objection filed by the Respondents is not applicable to the case in hand, inasmuch as, the accident took place long before the above circular was issued. Mr. Sahewalla further urged that even under the said circular 75% of the assessed loss has to be paid which has not been done in the case in hand.
ON the other hand, Mr. Mahanta has urged that as the vehicle in question carried passengers illegally, the Insurance Company is not liable for the present claim. We may refer here that according to learned Counsel for both the parties as a result of the accident 3 persons died and some persons were injured and claim petitions are pending before the learned Motor Accident Claims Tribunal at Golaghat. Regarding submission of Mr. Mahanta that allowing the vehicle to carry passengers illegally, we are of the opinion, that for this illegality, action may be taken by competent authority under the provisions of the Motor Vehicles Act, 1988. Therefore, this plea is not tenable and accordingly rejected. Regarding submission of Mr. Sahewalla that the above circular is not applicable to the case in hand, we find force in the submission, inasmuch as, the circular was issued subsequent to the accident.
AS the vehicle in question was only covered by policy of insurance issued by opposite party 1 and the accident took place during the period covered by the policy the Insurance Company has to compensate the complainant for the damage caused to the vehicle as per the Insurance Policy. AS stated above, from the fact that complainant filed the final claim with all relevant documents on 20.4.90 and the Insurance Company has not settled the claim even under the above circular dated 6.12.91, is held that there was negligence and deficiency of service on the part of the Insurance Company. It is not the case of the Insurance Company that under the policy the present claim is barred.
WE are of the opinion that the complainant is entitled to Rs. 65,086/- as costs of repairs of the vehicle. WE are not able to accept the claim of interest @ 24% per annum. In our opinion, the complainant shall be entitled to get interest on the above sum@ 12% with effect from the date of expiry of two months of institution of the claim, i.e. from 21.6.90 till the amount is paid. The Insurance Company is allowed three months time to pay the amount. Petition is disposed of. Complaint allowed.