Accident of BMW Car – Covered by Insurance Policy and also by BMW Secure Advance Policy for new car in case of more than 75% damage – Repudiation of claim
In the accident of 29.7.2012, the BMW 3 Series Car of the respondent was completely damaged and beyond repairs.
The respondent had taken personal loan of Rs.26,92,229/- from the car financing company and purchased BMW car on 17.5.2012 in the name of Dassault Company. As the car could not be kept on busy highway, it was shifted to BOSCH Car workshop.
Motor Insurance Policy was taken from the appellant and the second one was the BMW Secure Advance Policy of BMW, on payment of Rs.59,158/- and Rs.24,831/- for the respective policy. Both the policies show that if the car suffers damage of more than 75% of IDV, a new car must be given to the insured.
On 17.8.2012, the preliminary survey report for loss of Rs.25 lakhs was submitted. The survey report of the Dealer had estimated the loss for Rs.38,34,730/-.
However, the Insurer, without notice to the owner, appointed SHAPT professional services for survey. The said agency submitted the report on 3.1.2023.
On 7.1.2023, the final report of Insurer’s Surveyor was submitted for total loss of Rs.25,83,012/-.
On 9.1.2023, the Insurer repudiated the claim on the ground of delay in filing claim, owner failed to reply letters of insurer, difference in the description of the accident in the claim form and police report and suppression of materials as blood stains were found in the vehicle.
The State Commission directed the Insurer and BMW to give a new car of the same make / model. The National Commission dismissed the appeals.
HELD that the BMW Secure policy does not provide for replacement of new BMW vehicle. However, BMW can be held liable under the said policy if it is established that the insurer under the motor insurance policy has accepted the case of total loss. The repudiation of the claims on the grounds given by the Insurer was illegal. The appeals were partly allowed and substituted by monetary compensation in place of a new car.
Judgment dated 20.11.2023 in Bajaj Allianz General Insurance Co. Ltd Vs. Mukul Aggarwal & Ors (Civil Appeal Nos.1544 and 1545 of 2023)
