No.201401/31/09/01/000002576 valid from 28.10.2009 to 27.10.2010, for a sum of Rs.2,50,000/-. At the time of obtaining the aforesaid policy, respondent No.1 availed a discount i.e. ‘No Claim Bonus (NCB) @ 20%, amounting to Rs.1196.70 by making a false declaration that he did not receive any claim on the aforesaid vehicle from his previous insurer during the previous policy year. But on enquiry by the insurer from the previous insurer i.e. Oriental Insurance Company Limited, seeking confirmation regarding the status of the vehicle during previous policy period, the previous insurer of respondent No.1 vide endorsement dated 21.12.2009, confirmed that one claim was reported under the previous policy period. Thus, on receipt of the aforesaid report, the petitioner company came to know that no claim bonus was received by respondent No.1 on misrepresentation. In the meantime, the insured vehicle, owned by respondent No.1 had met with an accident, qua which he again set up a claim for Rs.99,500/-, but the company rejected the claim on the ground that respondent No.1 was guilty of suppression of material facts at the time of obtaining the insurance policy in as much as, he has suppressed the fact of having received a claim during the expiring policy period, so as to secure a false ‘No Claim Bonus’ from the petitioner company. Having left irritated, respondent No.1 initiated proceedings before the Permanent Lok Adalat (Public Utility Services), Ludhiana-respondent No.2, seeking a direction to the petitioner company to pay a claim of Rs.2,50,000/on account of damage to the car along with damages of Rs.1,00,000/- and interest at the rate of 18% per annum from the date of loss till payment.
