Haryana State Commission Reduces Insurer's Liability, Says, Survey Report Should Be Relied Upon

Brief Facts:

Late Mr. Roshan Lal, the husband of the Complainant, owned a vehicle which was insured by the New India Assurance Company Ltd. (“Insurance Company”), with a sum assured of Rs. 2,27,500/-. During the validity of the policy, the vehicle, driven by Sultan Singh with Roshan Lal as a passenger, met with an accident while trying to avoid hitting a stray cow. Both Sultan Singh and Roshan Lal tragically died in the accident.

Following the accident, a General Diary (G.D.) entry was made at the Police Station-Pundri, Distt. Kaithal and information regarding the accident was also provided to the Insurance Company. The Complainant applied for the claim of the damaged vehicle, submitting all required documents as requested by the Insurance Company. However, the Insurance Company repeatedly postponed the matter and eventually refused to release the claim amount without providing satisfactory reasons. Feeling aggrieved, the Complainant filed a consumer complaint in the District Consumer Disputes Redressal Commission, Kurukshetra, Haryana (“District Commission”).

In response, the Insurance Company contested the complaint, alleging that the Complainant had not presented all relevant facts. They admitted that the vehicle was insured with them and that they received intimation of the damage, with some documents submitted by the Complainant. They claimed that a qualified and licensed surveyor assessed the loss and submitted a report. The competent authority then repudiated the Complainant's claim after considering all the facts. The District Commission allowed the complaint, directing the Insurance Company to pay Rs. 2,27,500/- to the Complainant. Dissatisfied with the order of the District Commission, the Insurance Company filed an appeal in the State Consumer Disputes Redressal Commission, Haryana (“State Commission”).

Observations by the State Commission:

The State Commission found the surveyor appointed by the Insurance Company assessed the net loss at Rs. 1,23,314/-, which was based on a detailed report dated 22.09.2014. This assessment considered various components of the vehicle and applied admissible depreciation, as per the policy terms. The State Commission emphasized the legal value of the surveyor's report, stating that it forms a strong basis for determining the extent of the insurer's liability. Consequently, the State Commission noted that the District Commission's decision to hold the assessed loss as wrong, illegal, and arbitrary lacked valid reasons. Therefore, the State Commission endorsed the surveyor's report and held the insurer liable for Rs. 1,23,314.05/- as per the report.

Conclusively, the order of the District Commission was modified to reflect the revised liability of the Insurance Company. The Insurance Company was directed to pay Rs. 1,23,314.05/- to the Complainant, along with 6% interest per annum.