R.JAYAKUMAR vs NATIONAL INSURANCE CO. LTD.

THIS Revision Petition filed by R. Jayakumar raises the question of the relevant date from which the period of 12 months for filing the claim with the Insurance Company is to be calculated. Briefly the facts are that the Complainant Shri R. Jayakumar, insured his tempo van with the branch office of the National Insurance Company Ltd. at Cuddalore, Respondent No. 1. This van met with an accident on 15.5.1991 and the claim was made by the Complainant for the damages suffered by the vehicle. The claim was repudiated by the Insurance Company on 4.12.1991. The Insurance Company opposed the claim on the ground that the claim having been repudiated on 4.12.1991 by the Insurance Company, any complaint in this regard should have been filed before 3.12.1992 whereas the complaint was filed only on 8.2.1994, more than 12 months after the repudiation. In support of this contention the Insurance Company has cited Condition No. 7 in Paragraph No. 4 of the policy which reads as follows : "It is also hereby further expressly agreed and declared that if the company shall disclaim liability to the insured for any, claim hereunder the such claim shall not within twelve calender months from the date of such disclaimer have been made the subject matter of a suit in a Court of law then the claim shall for all purposes be deemed to have been abandoned and shall not thereafter be recoverable hereunder"

THE contention of the Complainant is that after the repudiation by the branch office of Insurance Company at Cuddalore on 4.12.1991 he remained in correspondence with their Regional Office which reiterated the repudiation on 19.3.1992 and, therefore, the period for limitation under Condition No. 7 should be reckoned from 19.3.92 and not from 4.12.1991. If that is accepted, his complaint will be within the prescribed period of 12 months. The District Forum accepted this plea of the Complainant but the State Commission rejected it maintaining that a complaint filed 12 months after the repudiation on 4.12.1991 was not maintainable.

WE have given our careful consideration to this issue relating to the date from which the period of 12 months should be calculated to satisfy the Condition No. 7 of the policy.

IT would be seen that the Complainant has made the Cuddalore Branch of the National Insurance Co. Ltd. as Respondent No. 1 and Regional Office of the Insurance Company at Madras as Respondent No. 2. The claim was filed with the Cuddalore Branch of the Insurance Company in the first instance and it was repudiated by them on 4.12.1991. Thereafter, the Complainant approached Respondent No. 2, namely, the Regional Office of the Insurance Company for the reconsideration of his claim and they in their letter dated No. MRO-GC-10-92-SSK:RP dated 19.3.1992 have stated as follows :� "This claim was been reviewed carefully and it is regretted that we could not admit the claim because of breach of policy conditions as well as violation of the provisions of Motor Vehicles Act and Rules. We are sorry that we are not in a position to help you in this case."

This letter is quite clear on the point that the claim of the Complainant was under review with the Regional Office of the Insurance Company and it is only after their letter dated 19.3.1992 reiterating the earlier repudiation that the complainant filed his complaint before the District Consumer Forum. In the circumstances, we are of the view that the relevant date for calculating the period of 12 months, to satisfy Condition No. 7 of the policy, should be 19.3.1992 and not 4.12.1991. Therefore, the complaint is within time and is not barred by limitation of Condition No. 7. We are not going into the merits of this case as we are of the view that this should better be done by the State Commission. Therefore, we remand this case back to the State Commission for a decision on merits in accordance with law. No order as to costs.