The Hindu : Tamil Nadu News : Insurance firm's revision petition dismissed by national consumer forum

Online edition of India's National Newspaper
Monday, Feb 05, 2007
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Tamil Nadu

Tamil Nadu

Insurance firm's revision petition dismissed by national consumer forum

K.T.Sangameswaran

Case relates to reimbursement of Rs. 2.30 lakh to a person

CHENNAI: The National Consumer Disputes Redressal Commission (NCDRC) has dismissed a revision petition by Oriental Insurance Company Ltd., challenging the order of the State Consumer Disputes Redressal Commission (SCDRC) confirming a District Forum's order directing the company to reimburse a person Rs.2.30 lakh.

In its order, a Circuit Bench of NCDRC comprising the president, Justice M.B.Shah and member, Rajyalakshmi Rao, did not accept the insurance company's submission that the District Forum and the State Commission ought to have referred to and relied upon the surveyor's report. As per the report, the complainant was entitled to only Rs.56,997 on repair basis or Rs.50,000 on total loss basis.

The Bench said the surveyor's report appeared to have been made as a self-serving report.

No error

Considering the report of the Motor Vehicle Inspector, authorised service station and the surveyor's report, it could not be said the District Consumer Disputes Redressal Forum, Tiruchirappalli or the SCDRC committed any error in passing the impugned order holding that the insurance company was liable to settle the claim on total loss basis.

In view of the evidence produced on record, the surveyor's report loses its importance because it was half-hearted.

The surveyor assessed the loss on the assumption that the vehicle's market value was about Rs. one lakh.

He had not stated reasons for arriving at his assessment.

The Bench concluded that in the present case, the vehicle was purchased in 1995. It was heavily damaged due to accident within three-and-a half years. That was also noted by the surveyor.

The District Forum and SCDRC assessed the loss on total loss basis and the sum assured was taken as its market value.

From the sum assured of Rs.2.80 lakh, the salvage value of Rs.50,000 as assessed by the surveyor was reduced and the District Forum directed the insurance company to reimburse to the complainant, M. Rathnamani, Rs.2.30 lakh. That was affirmed by the SCDRC, the Circuit Bench said and dismissed the revision petition.

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