Summary
An insurer repudiated a verified truck-theft claim because notice was delayed eight days. The owner explained that he had been assisting police efforts to trace the vehicle. The Court held that satisfactorily explained unavoidable delay could not mechanically defeat a genuine claim, reversed the consumer fora, and awarded the approved loss amount plus compensation and interest.
Issues
- Whether an eight-day delay in notifying a genuine theft justified repudiation despite a satisfactory explanation.
- What monetary relief should follow.
Held
- Immediate intimation remained a policy obligation, but unavoidable and satisfactorily explained delay should not bar a genuine claim. Repudiation required valid grounds; mechanical reliance on a technical delay was particularly unfair after the insurer’s investigator verified the theft. Consumer-protection legislation required a beneficial construction. (¶ 10–11)
- The owner’s and driver’s affidavits explained their assistance to police in searching across Rajasthan. The explanation for eight days was cogent, and the investigator’s verified claim of Rs.7,85,000 had received approval. The lower fora erred in rejecting it without considering those circumstances. (¶¶ 9, 12)
- The Court added Rs.50,000 compensation, bringing the award to Rs.8,35,000, with eight per cent annual interest from filing the claim petition until payment, payable within eight weeks. (¶ 12–14)
Result
Appeal allowed; all three consumer-forum orders set aside and claim allowed for Rs.8,35,000 with eight per cent annual interest from the claim-petition filing date until payment, due within eight weeks; no costs.