NATIONAL INSURANCE COMPANY LIMITED vs PREM SINGH

VEHICLE bearing registration No. HP-01h-2692 being insured between 24. 2. 2005 and 23. 2. 2006 is not in dispute and cover note in this behalf was issued on 23. 2. 2005. At the time of hearing it could not be disputed on behalf of the respondent, that immediately in the preceding year, the vehicle was insured with the United India Insurance Company Ltd.

AFTER the vehicle was got insured, it met with accident on 26. 10. 2005 at 11. 30 p. m. on the return journey to Una from Mubarikpur, near Amb Bazar. FIR was lodged at Police Station Amb. Claim was not settled after receipt of intimation and also after the loss having been got assessed from the surveyor by the appellant. This resulted in filing of the Complaint No. 75/2006. When put to notice, the appellant contested the complaint regarding its maintainability, driver holding not any valid and effective driving licence at the time of accident, complaint involving complicated questions of law and fact. Further defence of the appellant was that when surveyor was appointed on receipt of information regarding accident, it transpired that the respondent had obtained "no Claim Bonus" of 20% from the insurer of the vehicle, i. e. United India Insurance Company Ltd.

District Forum below after hearing the parties allowed the complaint directing the appellant to pay Rs. 1,13,020 along with interest @ 9% per annum from the date of filing of the complaint i. e. 28. 9. 2006 till realization, and also allowed cost of Rs. 2,000. Hence this appeal.

MR. Thakur in support of this appeal urged that in terms of GR-27 of India Motor Tariff (copy whereof is placed on the file as Annexure R-6 of the complaint file), it was the duty of the appellant to have brought this fact of having obtained claim of accident in the immediately preceding year. This omission on the part of the respondent is enough to allow this appeal and consequently dismissing the complaint. We have examined GR-27 which deals with "no Claim Bonus". In case the appellant wanted to take benefit of this, a duty is enjoined upon the agent/development officer to have obtained the declaration from an insured, like respondent before us to the following effect: "i/we declare that the rate of NCB claimed by me/us is correct and that no claim as arisen in the expiring policy period (copy of the policy enclosed ). I/we further undertake that if this declaration is found to be incorrect, all benefits under the policy in respect of Section 1 of the Policy will stand forfeited. "

(Emphasis supplied)

ADMITTEDLY no such declaration was obtained. Faced with this situation Mr. Thakur tried to take advantage from the affidavit of Dhruv Kumar S/o Sh. Roshan Lal, Development Officer of Una Branch of his client. What is made out from this is, that he had undertaken the insurance of the vehicle of the respondent with his (respondent''s) assurance that he has not received "no Claim Bonus" during the preceding 3 years of insurance. Moreover, this affidavit in any manner in our opinion does not improve the case of the respondent, for the simple reason that what was said by the appellant is of no consequence. To the contrary it was for the development officer to have obtained the requisite declaration as extracted hereinabove in terms of the GR-27 of the India Motor Tariff. He has not said a word as to whether the declaration was obtained by him or not in his affidavit. Despite this being the factual position Mr. Thakur wanted us to accept what is said in the affidavit of the development officer. Affidavit is silent whether the Development Officer having appraised the respondent about the declaration required to be furnished by the latter. As such we are noting his submission simply to reject the same. No other point is urged. In view of the aforesaid discussion there is no merit in this appeal which is accordingly dismissed, leaving the parties to bear their own costs. All interim orders passed from time-to-time in this appeal shall stand vacated forthwith. Learned Counsel for the parties have undertaken to collect the copy of this order from the Reader free of cost as per rules. Appeal dismissed.