The National Consumer Disputes Redressal Commission, New Delhi, has held that in case a vehicle meets with an accident, the surveyor’s report is not binding regarding the insurance claim, if the report is malafide or incorrect.
The National Commission has upheld the decision of the Chandigarh Consumer Disputes Redressal Commission against Oriental Insurance Company Limited. The Chandigarh Commission had directed the insurance company to pay Rs 8.50 lakh, which was the Insured Declared Value (IDV) of the car, to Paramjit Kaur, a resident of Sector 19, Chandigarh.
The complainant had purchased a Toyota Corolla car in October 2007 for Rs 10.04 lakh. The vehicle met with an accident in April 2008, and was extensively damaged. The cost of repair amounted to Rs 7 lakh approximately.
However, the surveyor for the insurance company stated in his report that the car had met with a minor accident. “By no stretch of imagination, such a huge damage to the car could be termed as minor. At the face of it, it was a fit case for declaring the car as a total loss. However, the surveyor still found the car to be in a repairable condition. This action of the surveyor itself smacks of malafide,” observed the Commission.
The Commission further observed that the surveyor’s report could not be made binding on the case. “Apparently, the report has been prepared with malafide intentions to help the insurance company to evade its full liability to indemnify the complainant for the loss suffered,” stated the Commission.
In this light, the Commission directed the insurance company to pay the full insured amount to the complainant with interest at the rate of nine per cent per annum, along with litigation costs of Rs 5,100. The interest would be paid two months after the submission of the surveyor’s report, till realisation.

The insurance company had appealed against the Chandigarh Commission’s order before the National Commission. The appeal was dismissed.

Source - IndianExpress.com

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