NARENDRA SINGH vs New India Insurance Co. Ltd.

THIS is an appeal filed by the complainant against the order dated 19.1.96 passed by District Consumer Disputes Redressal Forum, Chattarpur in their Case No. 28/93 dismissing the complaint on two grounds-firstly that the complainant is not a consumer and secondly that the repudiation of the claim was justified as the three persons travelling in the truck were passengers and not the employees coming under the purview of Workman''s Compensation Act.

THIS finding of the Forum that the complainant is not a consumer is not correct. The condition of not being "for commercial purpose" applies only in case of purchase of "goods". There is no such condition for "service" hired or availed of. The provision of facilities in connection with insurance is a "service". Hence, the complainant is very much consumer, even if the vehicle was meant for commercial use. So far as this order of the Forum is concerned, that the three persons travelling in the truck were passengers and not employees of the complainant coming under preview of Workman''s Compensation Act and, therefore, the opposite party rightly repudiated the claim of the complainant, we find that in Civil Appeal No.6296 decided on 20.5.96 (1996) 4 SCC 607, the Hon''ble Supreme Court has given directives as under: "That it cannot be a ground for Insurance Company to repudiate the contract as the fact of their being passengers or coolies does not make any difference to the risk involved. The misuse of the vehicle was somewhat irregular though, but not so fundamental in nature so as to put an end to the contract. The exclusion term of the insurance policy must be read down so as to serve the main purpose of the policy that is to indemnify the damage caused to the vehicle."

In view of the aforesaid directions of the Hon''ble Supreme Court, we accept this appeal and set aside the order of the District Forum and remand the case to the District Forum for disposal in respect of compensation etc., to be awarded to the complainant after giving due opportunity to both the parties of being heard. Order set aside; case remanded.