JCB Burnt In Naxal Attack: NCDRC Dismisses Oriental Insurance's Revision Plea
The National Consumer Disputes Redressal Commission (NCDRC), comprising Justice A.P. Sahi (President) and Bharatkumar Pandya (Member), has held that The Oriental Insurance Co. Ltd. could not repudiate an insurance claim merely on the ground that the JCB's helper did not possess a valid driving licence, where the evidence did not establish that he was actually driving the vehicle when it was set on fire by Naxalites.
The Commission found no evidence that the JCB was moving when it was set on fire and held that there was no breach of the policy conditions. It dismissed the insurer's revision petition and upheld the order allowing the claim.
Facts:
The respondent, Abhishek Gondi, was the owner of a JCB Excavator Machine, which was insured with The Oriental Insurance Co. Ltd. On 18 February 2017, while the JCB was operating in the Dantewara Naxal-affected area of Chhattisgarh, Naxalites allegedly set the machine on fire, resulting in its total loss. An FIR was lodged and the incident was also intimated to the insurance company. A surveyor was appointed, who assessed the loss and communicated it to the insurer.
The insurance company, however, repudiated the claim on January 24, 2019, contending that the JCB was being driven by Vikram Kumar Gautam, who did not possess a valid driving licence, thereby constituting a breach of the insurance policy.
Aggrieved by the repudiation, Abhishek Gondi approached the District Consumer Disputes Redressal Commission, Jagdalpur, Bastar. During the proceedings, the insurance company's surveyor, who was also a practising advocate, submitted an affidavit in support of the insurer. The FIR and other affidavits concerning the circumstances of the incident were also placed before the Commission.
The insurer maintained that Vikram Kumar Gautam was driving the JCB when the incident occurred and did not have a valid licence. The complainant, on the other hand, stated that the JCB was being driven by Vinod Singh, a licensed driver, who had temporarily got down from the machine to attend to the call of nature. According to the complainant, Vikram Kumar Gautam was merely a helper and was sitting on the machine along with two labourers.
The District Commission allowed the complaint, and the Chhattisgarh State Consumer Disputes Redressal Commission affirmed the decision on 24 March 2021. The Oriental Insurance Company subsequently approached the National Consumer Disputes Redressal Commission (NCDRC) by filing the present revision petition challenging those orders.
Observation of the Commission:
The NCDRC observed that although the FIR mentioned that Vikram Kumar Gautam had started the JCB, there was no convincing evidence to show that the vehicle was actually moving when the Naxalites set it on fire. The Commission noted that Vinod Singh was the licensed driver and had temporarily left the machine, while Vikram and two labourers were restrained by the Naxalites before the JCB was set ablaze.
The Commission held that, on the preponderance of probabilities, the JCB was not moving at the time of the incident. Even assuming that Vikram had attempted to move the excavator, this did not establish that he was actually driving it on a public road. Therefore, there was no breach of the policy condition concerning the driving licence.
The NCDRC found that the JCB had suffered total loss, most probably due to the Naxal attack, and upheld the findings of the District and State Consumer Commissions. It consequently dismissed the Insurance Company's revision petition, finding no merit in it.
Appearances:
For the Petitioner: Mr. Ajay Singh, Advocate, Mr. Himanshu Shukla, Advocate
For the Respondent: Mr. Rajesh Kumar Bhawnani, Advocate
Case No.: NC/RP/453/2022
Case Title: The Oriental Insurance Co. Ltd. Vs. Abhishek Gondi