Commission pulls up consumer forum

Ishrat S Banwait

Tribune News Service

Chandigarh, December 11

The State Consumer Commission has pulled up the District Consumer Forum for not granting compensation to a consumer. The case involved an insurance claim wherein the forum had ordered a partial claim to be given without any compensation. Recently, the commission had rapped the forum for not granting interest on compensation to consumers in property-related cases.

In August this year, the forum had decided the case in the consumer’s favour. The case was filed by Sector 38 (West) resident Jeevan Lata against IFFCO Tokio Insurance Company Limited. Jeevan Lata’s car had been stolen and he had demanded a claim that was rejected by the company.

Jeevan’s Maruti Dzire car of 2013 model was insured by the company for an insured declared value of Rs 5,39,778. It was stated that the said vehicle was stolen from Royal Residency Hotel, Aligarh, UP, on December 8, 2015, which was reported to the Aligarh police as well.

The insurance company’s investigator found out that the car was being used as a taxi, i.e. for a commercial purpose. Also, the car had been parked in a no-parking zone and the key had been lost by the driver in the hotel. He said the keys were lost due to the negligence of the driver. Hence the car was stolen, thus they deserved no claim.

The forum allowed the complaint, but deducted 10 per cent towards depreciation of the car’s declared value. It also found the parking of the car in a no-parking zone and losing the key carelessness, thus not granting any compensation or litigation expenses.

Jeevan filed an appeal in the commission, which found the forum wrong in deducting 10 per cent towards depreciation of the vehicle. The commission observed, “The mere fact that the vehicle was parked in a no-parking zone of the hotel has no nexus with its theft.”

It added that it is not a case of the driver leaving the keys in the vehicle or its ignition was kept on in the said no-parking zone, as a result of which the theft took place.

“Thieves can steal the vehicle from any place when they get a chance,” the commission said. The commission also observed that the forum was wrong in ordering refund of the amount after deducting 10 per cent towards depreciation. It added, “...order passed by the forum, being not based on the correct appreciation of evidence and law on the point, suffers from illegality...”

The commission thus directed the insurance company to pay the complete amount of Rs 5,39,778 along with Rs 40,000 for mental agony and physical harassment and Rs 10,000 as litigation expenses.