The Division Bench of the Supreme Court consisting of Justices Sanjiv Khanna and Bela M. Trivedi, while hearing an appeal, opined that when the complainant had lodged the FIR immediately after the theft of the vehicle, and when the police after the investigation had arrested the accused and also filed challan before the concerned Court, and when the claim of the insured was not found to be not genuine, the Insurance Company could not have repudiated the claim merely on the ground that there was a delay in intimating the Insurance Company about the occurrence of the theft.
Facts
The vehicle in question was purchased by the appellant and duly insured with Respondent No. 1 (Insurance Company). The said vehicle was robbed by some miscreants. Consequently, an FIR was registered by the appellant-complainant. The police arrested the accused and filed the challan against them in the concerned Court, however, the vehicle in question could not be traced and, therefore, the police filed untraceable report. Thereafter, the complainant lodged the claim with the Insurance Company with regard to the theft of the vehicle in question. The Insurance Company, however, failed to settle the claim within a reasonable time, and therefore, the appellant-complainant filed a complaint before the District Consumer Disputes Redressal Forum.
Procedural History
During the pendency of the complaint, the respondent no.1 repudiated the claim of the complainant, stating inter alia that there was a breach of condition no. 1 of the policy which mandated immediate notice to the insurer of the accidental loss/damage, and that the complainant had intimated about the loss after the lapse of more than five months and, therefore, the Insurance Company had disowned their liability on the claim of the complainant. The District Forum allowed the said claim of the complainant. The aggrieved Insurance Company preferred an appeal before the State Consumer Disputes Redressal Commission. The complainant also preferred an appeal seeking enhancement of compensation. The State Commission dismissed the appeal filed by the Insurance Company and partly allowed the appeal filed by the complainant. The aggrieved Insurance Company preferred the Revision Petition before the NCDRC which came to be allowed.
Observations of the Court
The Bench referring to previous decisions of this Court observed that:
“The FIR was lodged immediately on the next day of the occurrence of theft of the vehicle by the complainant. The accused were also arrested and charge-sheeted, however, the vehicle could not be traced out. Of course, it is true that there was a delay of about five months on the part of the complainant in informing and lodging its claim before the Insurance Company, nonetheless, it is pertinent to note that the Insurance Company has not repudiated the claim on the ground that it was not genuine. It has repudiated only on the ground of delay. When the complainant had lodged the FIR immediately after the theft of the vehicle, and when the police after the investigation had arrested the accused and also filed challan before the concerned Court, and when the claim of the insured was not found to be not genuine, the Insurance Company could not have repudiated the claim merely on the ground that there was a delay in intimating the Insurance Company about the occurrence of the theft.”
Judgment
The impugned order was set aside.
Case Name: Jaina Construction Company vs The Oriental Insurance Company & Anr.
Citation: CIVIL APPEAL NO. 1069 OF 2022
Bench: Justice Sanjiv Khanna, Justice Bela M. Trivedi
Decided on:11th February 2022
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