Modifying the orders of a consumer forum, the Telangana State Consumer Disputes Redressal Commission directed Oriental Insurance Company Ltd to pay the owner of a goods van ₹1.93 lakh as insurance and ₹25,000 as compensation. The complainant had claimed that he lost income due to an approximate delay of six months in getting his insurance money.

Van accident

The Commission was dealing with an appeal filed by the company against Khaja Shahid Hussain, a resident of Ward No. 6 in Karimnagar. His van met with an accident in December 2009.

Based on the arguments and evidence put on record, the Commission noted that two licensed surveyors assessed the extent of damage.

While one did not quantify the rate in terms of cost of repair, the other did so in detail and pegged it at ₹2,35,789.

Cash settlement

The Commission noted that Mr. Hussain had said that the vehicle was beyond repair and opted for a cash settlement. It stated that if the consumer chose indemnification, he cannot ask the company to pay the entire amount as quantified by the surveyor for getting the vehicle repaired. When this has not been done, charges such as 14.5% tax, as mentioned by the surveyor, would be applicable and deductible.

It stated that while the company was justified in deducting tax, salvage value and labour charges, it cannot deny Mr. Hussain the assessed insurance amount.

Apart from compensation, the Commission directed the company to pay ₹7,000 as costs. It also stated an interest rate of 9% per annum would apply if the insurance amount was not paid within 30 days of the order.