Harvinder Singh vs National Insurance Co. Ltd.
2009 Latest Caselaw 4316 Del

22
*       IN THE HIGH COURT OF DELHI AT NEW DELHI

                       +       MAC.APP.No.406/2009

%                                 Date of decision: 26th October, 2009


      HARVINDER SINGH                       ..... Appellant
                   Through : Mr. B.P. Shukla, Adv.

                      versus

    NATIONAL INSURANCE CO. LTD.         ..... Respondent
                  Through : Mr. Pradeep Gaur and
                            Mr. Amit Kumar Pandey, Adv.
CORAM :-
THE HON'BLE MR. JUSTICE J.R. MIDHA

1.      Whether Reporters of Local papers may                 YES
        be allowed to see the Judgment?

2.      To be referred to the Reporter or not?                YES

3.      Whether the judgment should be                        YES
        reported in the Digest?

                               JUDGMENT (Oral)

1. The appellant has challenged the award of the learned

Tribunal whereby the compensation of Rs.4,000/- has been

awarded to the appellant. The appellant seeks the enhancement

of the award amount.

2. The accident dated 24th March 1993 resulted in damage to

bus bearing No.DL-1P-4090. The appellant is the owner of the

said bus.

3. The accident in question was caused by the rash and

negligent driving of the bus bearing No.DL-1P-3303 and the

appellant filed the claim petition before the learned Tribunal

claiming the compensation for damage suffered for repairs of bus

No.DL-1P-4090.

4. The appellant spent a sum of Rs.68,503/- on the repairs of

his bus. The appellant's bus was duly insured with New India

Assurance Co. Ltd. and, therefore, the appellant claimed the

aforesaid amount from New India Assurance Co. Ltd. who paid a

sum of Rs.32,674/- to the appellant leaving a balance of

Rs.35,829/- which was deducted under various heads including

depreciation, etc. The appellant filed the claim petition before

the learned Tribunal claiming Rs.90,730/- including the balance

amount of Rs.35,829/-.

5. The learned Tribunal rejected the claim of the appellant

towards the compensation for repairs of vehicle on the ground

that the original bills for Rs.68,503/- have not been proved by the

appellant. The learned Tribunal observed that the appellant has

proved only two bills for Rs.26,650/- and Rs.18,000/- as Ex.PW3/1

and Ex.PW3/2. The appellant also claimed compensation for loss

of earning of eight days at the rate of Rs.1,000/- per day against

which the learned Tribunal awarded Rs.4,000/- at the rate of

Rs.500/- per day. The appellant also claimed compensation on

account of loss due to no claim bonus, extra premium paid,

mental shock, agony and harassment which were not awarded by

the learned Tribunal.

6. The findings of the learned Tribunal are not based on

evidence on record. The appellant has filed a detailed affidavit

by way of evidence before the learned Tribunal in which he has

deposed that he has spent a sum of Rs.68,503/- on the repair of

the vehicle. The complete break-up of the said amount item wise

has been given in the affidavit. The appellant has further stated

that all the original bills were submitted by him to New India

Assurance Co. Ltd. who paid a sum of Rs.32,674/-. The original

bills are in possession of New India Assurance Co. Ltd. and the

appellant placed on record the photocopies as secondary

evidence. Although all the bills were photocopies and were duly

proved as secondary evidence under Section 65 of the Indian

Evidence Act, the learned Tribunal had put exhibit number on

only two bills and marked the remaining. The finding of the

learned Tribunal that the appellant has not proved the two bills is

contrary to the record. The appellant has successfully proved that

he has incurred a sum of Rs.68,503/- on the repairs of the vehicle

against which he has received Rs.32,674/- from his own

insurance. The appellant is clearly entitled to the balance

amount of Rs.35,829/- which was withheld by the respondent

without any justification. The finding of the learned Tribunal in

this regard is set aside and Rs.35,829/- is awarded to the

appellant.

7. The appellant claimed loss of income @Rs.1,000/- per day

against which the learned Tribunal awarded Rs.500/- per day. No

concrete evidence was placed on record by the appellant for

claiming loss of income and, therefore, the finding of the learned

Tribunal in this regard is not disturbed.

8. The learned Tribunal has not awarded any compensation to

the appellant towards mental harassment suffered by him due to

the respondent. Under the Claims Procedure Manual of the

Insurance Companies, the respondent is duty bound to appoint

an investigator immediately upon receipt of the claim and to

compute the compensation payable on the basis of the

investigator's report. The Procedure Manual further provides that

the amount computed by Insurance Companies on the basis of

the investigator's report shall be offered to the claimant. The

respondent has not placed any material on record to show that it

processed the appellant's claim in accordance with their

Procedure Manual. The attitude of the Insurance Companies is to

contest every case as a result of which the claimants are

deprived of the compensation when it was due and the Courts are

burdened with the litigation.

9. The learned counsel for respondent No.1 submits that the

appellant has only claimed Rs.1,000/- towards mental agony and

harassment. It is well settled by the judgment of this Court in the

case of Virender Singh vs. Anand Prakash, 2008 ACJ 2519

that the claimants are entitled to just compensation and they can

be awarded the amount over and above the amount claimed. In

the opinion of this Court, the appellant is entitled to the

compensation of Rs.15,000/- towards mental agony and

harassment suffered by him due to the acts of the respondent.

10. Considering the facts and circumstances of this case,

Rs.15,000/- is awarded to the appellant as compensation for

harassment, mental agony and other loss suffered by him.

11. The appeal is allowed and the award amount is enhanced

from Rs.4,000/- to Rs.54,829/- (Rs.4,000 + Rs.35,829 +

Rs.15,000). The learned Tribunal has awarded interest @9% per

annum which is not disturbed on the original award amount of

Rs.4,000/-. However, on the enhanced award amount, the rate of

interest shall be @7.5% from the date of filing of the petition till

realization.

12. Copy of this judgment be sent to CMD of National Insurance

Co. Ltd. to bring to his notice that the Insurance Companies are

not at all following the Claims Procedure Manual which is

resulting in the avoidable litigation. If the Insurance Companies

appoint the investigator immediately upon the receipt of notice

and thereafter compute and offer the compensation payable in

accordance with law to the claimant, much of the litigation can

be resolved at the initial stage.

13. The enhanced award amount along with interest be

deposited by respondent No.1 with UCO Bank A/c Harvinder

Singh.

14. Upon such deposit being made, the UCO Bank is directed to

release the said amount to the appellant by transferring the same

to his Saving Bank Account.

15. Copy of this order be given 'Dasti' to learned counsel for the

parties under the signature of Court Master.

J.R. MIDHA, J OCTOBER 26, 2009 aj