On the file of O.P. No. 149 of 2013

Facts.

This is a petition filed under Section 22c(I) read with Section 22A (b) (vi) 0f the Legal Services Authorities Act, 1987, for short the LSA Act. The dispute raised in this petition relates to the insurance amount claimed by the petitioner with respect to his vehicle bearing registration No. KL-40 G 8771, which is covered by a valid insurance policy with the Oriental Insurance company Limited, New Delhi , and with The Manager, The Oriental Insurance Company, Thripunithura. The vehicle had met with an accident on 26.12.2013. Riyas the petitioner entrusted the damaged vehicle with the work shop run by Messrs Popular Mega motors India Ltd., Kochi for getting it repaired. But the repairing work was not completed by the workshop on the ground that the Insurance company did not settle the insurance claim. In the result the petitioner approached the Permanent Lok Adalath praying for appropriate directions to the insurance company to pay the entire cost of repair. He also prayed for a grant of Rs. 2 lakh towards loss incurred by him an Rs. One Lakh towards compensation for the mental agony and sufferings of the petitioner as against all the respondents.

NOTICE FROM PLA and Insurance company’s response

Upon receipt of notice from the authority the Oriental Insurance Company represented both by the Delhi Unit and its Brach at Thripunithura filed written statement touching all the allegations and claims in the petition and

stating their willingness and readiness for settling the dispute.

Messrs. Popular Mega Motors India Ltd

The service company appeared an filed detailed written statement . they disputed the averments on the part of the petitioner and prayed for the dismissal of the petition as against them with costs and damages. They demanded an amount of Rs. 5,24,000/- towards the repairing charge of the damaged vehicle.

Proceeding on the part of the PLA

The authority conducted a statutory reconciliation under section 22 C (4) of the LSA Act in attempt to have an amicable settlement of the dispute. Resultant upon the discussions so held , all the parties to the dispute ageed to have a triparty settlement . The parties to the dispute are the following.

Petitioner:Riyas s/o Khader, Thottungal House,

Kaithakattukara, Pattimattom, Ernakulam

Dist.

Respondents:1) The Oriental Insurance company Ltd.

New Delhi

2) The Manager Oriental Insurance

Company Thripunithura.

3) Director , Popular Mega Motors India Ltd.

Kochi.

Adv. Sri. Paul K. Varghese represented the Petitioner, and Adv. Jacob Mathe P. Represented Ist 7 2nd respondent, and Adv. Ziyad Rahman and Shiraz Bava v. S. Represented the 3rd respondent.

The Tri-party settlement arrived at and its sequence.

1.The Petitioner on one side and 3rd respondent on the other side agree that the total cost of repair of the vehicle which is now in the workshop of the 3rd

respondent would be Rs. 5,24,000/-.

3rd respondent initially offers a reduction of Rs. 23,500/- as salvage value, thereby total due reduced to Rs. 5,00,500/-

2.The Insurance Company was not willing to come down to grant that a higher amount as Insurance claim.

The 3rd Respondent further offers a special discount only for the sake of a settlement of the dispute , of an amount of Rs. 16000/-. This resulted in a further reduction of repairing charge making total charges to Rs. 4,84,500/-

3.The Oriental Insurance Company clarified that they are ready to pay an amount of Rs. 4,64,500/-less Rs. 20000/-of the remaining payable cost to the workshop. The Insurance company agrees that on receipt of the final bill from the repairer as stated above, after the repairing of the vehicle , the insurance claim amounting to Rs.4,64,500/- will be paid directly to the 3rd respondent repairer within 10 days from the date of receipt of the bill.

4.It is further agreed that the copy of the communication by the 3rd respondent to the Insurance Company will be given to the petitioner for information.

5.The petitioner on one side and the 3rd respondent on the other side comes to an agreement as to the difference ie Rs. 20000/- payable to the repairer. The Petitioner agrees to pay it himself directly to the repairer.

6.The final contribution to the disputed amount is shared as follows.

Total cost for repairing : Rs. 5,24,500/-

Reduction offered by repairer: Rs. 39,500/-

Balance payable Rs. 4,84,500/-

Insurance company : Rs. 4,64,500/-

Amount borne by petitioner Rs. 20,000/-

7.It is further made clear that the 3rd respondent need not wait for the receipt of the insurance amount from the

insurance company for the release of the vehicle to the petitioner after getting the balance repairing charge of Rs. 20000/-

8.The petitioner and 3rd respondent comes to a mutual agreement to perform their part before 31.9.2015.

The settlement terms were reduced to writing and signatures of all concerned were obtained. In accordance with the terms and conditions arrived at , a settlement award was passed by the permanent Lok Adalat under the Legal Services Authorities Act, 1987.

The PLA directed to bear the costs themselves. The parties were informed that they will free of cost be provided with copies of the award.