Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1986 – s.21(b) Consumer Protection – Insurance claim Consumer Protection Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Consumer Protection – Insurance claim – Deficiency in service – Insurance Policy – Interpretation of – Appellant insured JCB Excavator with respondent for Insured Declared Value of Rs 13.50 lakhs – While the excavator was being used for road making, a portion of the road gave way due to which the excavator fell into a deep ditch resulting in death of two people and total loss of the excavator – Appellant filed for insurance claim – Respondent repudiated the claim on ground that overturning of the excavator was not covered in terms of the policy condition Indian Motor Tariff 47 (IMT 47) as the JCB excavator was being used as tool of trade and no additional premium was paid – Appellant filed complaint before District Consumer Forum alleging deficiency in service – District Forum directed the insurer to pay an amount of Rs 13.50 lakhs together with interest @ 9% – Judgment of District Forum upheld in appeal by State Consumer Forum (SCDRC) – Respondent filed revision petition – National Consumer Forum (NCDRC) reversed the decision of SCDRC on the ground that earth moving equipment such as a JCB excavator could be used either as a tool or as a vehicle and in the present case since it was being used for road making, it was being used as a tool and not as a vehicle – NCDRC held that the insurance claim could not have been allowed under IMT 47 unless additional premium was paid – On appeal, held : Clause 1 of the insurance policy covers loss or damage which arises as a consequence of a landslide – IMT 47 applies to a situation when the loss or damage was caused due to ‘overturning’ and the ‘overturning’ should arise out of the operation as a tool of such vehicle – The accident herein however was caused as a result of a portion of the road having given way and was in the nature of a landslide – The damage or loss was not a result of the overturning of the vehicle, but was plainly due to collapsing of the road which resulted in the vehicle falling into a deep ditch – NCDRC erred in reversing the concurrent findings of fact recorded by District Consumer Forum and SCDRC – Judgment of SCDRC accordingly restored.Consumer Protection Act, 1986 – s.21(b) – Revisional jurisdiction of National Consumer Forum (NCDRC) – Limited ambit of. |
Judge | Hon'ble Dr. Justice D.Y. Chandrachud |
Neutral Citation | 2022 INSC 745 |
Petitioner | Sharda Associates |
Respondent | United India Insurance Company Ltd |
SCR | [2022] 7 S.C.R. 548 |
Judgement Date | 2022-07-25 |
Case Number | 4910 |
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