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Judgment
THE appeal is directed against the order of the District Consumer Disputes Redressal Forum, Thanjavur dated 27-10-1992 in O.P. No. 103/92. THE complainant is the appellant.
THE complainant insured his cow with the opposite party Insurance Company for a sum of Rs. 3,500/-. THE cow died on 23-12-1989 and the claim was preferred. THE opposite party had not settled the claim and hence the complaint. Subsequent to the filing of the complaint, the amount of Rs. 3,500/- has been paid by the Insurance Company not to the complainant but to the Co-operative Society towards the loan obtained by the Complainant. The amount was paid on 17-3-1992. The District Forum held that as the said insurance amount has been paid to the Co-operative Society from which the complainant has borrowed the loan, there was no further claim and dismissed the complaint. The contention of the complainant is that though he preferred the claim on 5-5-1990, the Insurance Company has taken nearly two years to pay the amount on 17-3-1992 and the complainant is therefore entitled to claim interest for this periods. This contention of the complainant is well founded. We agree with the complainant that there has been inordinate delay on the part of the Insurance Company in settling the claim. The Insurer is therefore liable to pay interest on the sum of Rs. 3,500/- from the date of the claim namely 5-5-1990 till 17-3-1992 when the amount has been paid to the Co-operative Society at 12% per annum.
In the result the appeal is allowed and the opposite parties are directed to pay to the complainant, interest on the insurance amount of Rs. 3,500/- at 12% per annum from 5-5-1990 till 17-3-1992 and cost of Rs. 500/- in respect of these proceedings in both the Forums. Appeal allowed with costs.