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Friday, July 17, 2009

Repudiation/ rejection of insurance claim by the National Insurance Company Ltd.,

Fact of the case.
The complainant is owner of one mini lorry which was insured with the opposite party company by paying a premium of Rs.12,938/- out of which a sum of Rs.8,543.70 ps was allotted under the head of own dame to the said lorry to an extent of Rs, 4,95,000/- The policy is for a period of one year from 30-8-2003 to 29-8-2004. On 30-3-2004 the driver took the said lorry with a load of bananas and at about 3-10 am another lorry came across the road at rash and negligent manner at high speed dashed against this lorry which was going in normal speed on the left side of the road. The diesel tank of the said lorry was broken and caught fire and the driver died. The complainant submitted even that the RC permit and Driving license of the said driver were also burnt. The police case was registered and the complainant submit that deceased driver did not commit any negligence and it is only because of the negligence of the other lorry the accident occurred. On the instructions of the OP, the complainant approached assessing authority and estimated Rs,7,03,982/-.and the complainant made a claim to the opposite party to pay Rs. 4,95,000/- as agreed under the contract. On 25-9-2004 the complainant submitted Xerox copy of policy along with RC permit and fitness certificate. The Complainant got issued a registered legal notice to the opposite party, but the claim was not settled. It is also stated by the complainant that the Asst. Commissioner for Workmen Compensation paid compensation to the parents of the deceased lorry driver and that the opposite party now cannot challenge any violation of policy since the order passed by the Asst. Commissioner is final and the opposite party did not prefer any appeal. The complainant filed this complaint before the District Forum seeking direction to the opposite parties to pay Rs. 4,95,000/- compensation and costs. The Opposite party rejected/repudiation on the ground that that the driving license was given to one –xxxx—but not to driver hence their repudiation is justified.

The Hon’ble State Commission of A.P. passed an order, in the result this appeal is allowed. Order of the District forum is set aside directing the respondent/opposite party to pay 75% of 263,755/- with interest @ 9%p.a. from the date of repudiation till the realization together with costs of Rs.3,000/-

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