FA 112 of 2012 against CC No 133/2011  on the file of the District Consumer Forum II, Krishna District at Vijayawada.

Between :

M/s.  Oriental Insurance Company Ltd

Rep. by its Regional Manager

Sidhardha Women’s College Road,

Labbipet, Vijayawada                                  .. Appellant/opposite party

And

01. G. V. L. Narayana

S/o Naga Ramakrishna Rao

Occ : Property and business,

R/o d. No. 14-9-19 & 14-9-20,

Tirumala rao street, Gandhinagar,

Vijayawada.

02. G. Raghupathi Rao,

S/o Naga Ramakrishna rao

Occ: Property and business

R/o d. No. 14-9-19 & 14-9-20,

Tirumala rao street, Gandhinagar,

Vijayawada/                          . Respondents/complainants

Counsel for the Appellant              :           Mr. Bhaskar Poluri

Counsel for the Respondents       :           M/s. M. Aravindu

Coram           ;          

                              Sri R. Lakshminarasimha Rao…      Hon’ble Member

And

                                    Sri T. Ashok Kumar                ..         Hon’ble Member

Thursday, the Twenty Eighth Day of March

Two Thousand Thirteen

          Oral Order       :   ( As per Sri T. Ashok Kumar , Hon’ble Member )

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       1.        This is an appeal preferred by the opposite party as against the  orders dated 27.09.2011  in CC 133/2011 passed by the District Consumer Forum II, Krishna District at Vijayawada . For convenience sake, the parties as arrayed in the complaint are referred to as under :

2.            The brief averments of the complaint  are that the complainants 1 and 2 are the owners of storied building bearing Door No. 14-9-19 and 14-9-20 situated at Tirumala Rao street, Gandhi nagar, Vijayawada and they let out the premises aforesaid to the State Bank of Hyderabad, who in turn purchased the policy  ( Long Term Policy )  No. 433400/2001/1045  for the period from 08.03.2001 to 07.03.2011.  while the things thus stood,  on account of accidental fire  the building was damaged heavily on 09.07.2009. Immediately,  the complainants called L. G. Planners, Sivalayam Street, Vijayawada who in turn inspected the place of Fire accident and estimated the damage to a tune of Rs.4,24,652.48 Ps on 10.07.2009. Because of lack of knowledge about the policy the complainant failed to intimate about the accident to the opposite party but on coming to know about it they got issued legal notice  to the opposite party  on 28.07.2010 and the opposite party replied on 03.08.2010 with false and untenable allegations  so the complainant got issued another notice dated 31.3.2011 finally and  in spite of receiving the said notice  the opposite party did not give reply nor paid  the amount. The acts of Ops amount  to deficiency in service. Hence the complaint to pay damages, compensation and costs.

3.            Opposite party resisted the complaint by filing  counter and denied  the allegations made in the complaint and  mainly contended that they have no knowledge about L. G. Planners visiting the insured premises and their assessing the damages.  The complainants belatedly informed about the fire accident and thereby violated the condition no. 6(1) of the policy  and that legal notice was also issued after  the lapse of 12 months and as such the complainants are not entitled for the claim and that rightly the claim was repudiated even otherwise also the same was intimated to the complainants through reply notice.  The complainant failed to file proof of repairs and there is no cause of action to file  the complainant.  There was no deficiency in service on the part of the opposite party and the complainants filed the complaint with false allegations for wrongful gain and thus prayed to dismiss the complaint.  

4.            The 1^st complainant and one T. Balagopal filed affidavits  on behalf of the complainants and OP respectively and Ex. A1 to A7and Ex. B1 to B3 were marked.

5.    Having heard both sides and considering the evidence on record, the District Forum allowed the complaint in part  directing the opposite party  to pay Rs.3,50,000/- with interest @ 6% PA from the date of repudiation  till payment and also Rs.1000/- towards costs.

6.            Aggrieved by the said order, the opposite party filed the appeal and mainly contended that there is abnormal delay in informing the  OP about  the accident and claim  and that the complainant did not file any document to show that they got repaired the building and that mere estimation is not sufficient to believe their case and that if the Banker did not inform about the policy it is between the banker and the complainants but that cannot be a ground for condoning the latches and thus prayed to allow the appeal and set aside the impugned order.

7.            Heard counsel for the appellant and written arguments of the respondents/complainants filed.

8.            Now the point for consideration is whether the order of the District Forum is vitiated  either in law or on facts ?

9.    POINT :     

There is no dispute that the Complainants are owners of building bearing Door No. 14-9-19 & 14-9-20 situated at Tirumala Rao street, Gandhinagar, Vijayawada and that it was insured with the OP under Long Term Policy No. 433400/2001/1045 for the period from 08.03.2011 to 07.03.2011. According to the complainant,  on 09.07.2009 Fire Accident took place and the damage was estimated at Rs.45,24,652.48 paisa by L. G. Planners, Vijayawada and that they were not aware  of the said Insurance policy  and that they came to know  on 27.02.2010 about it  and then they issued notice to the  Op for paying the damages and thus the delay occurred in claiming the amount and informing the Insurance company about the fire accident. No FIR copy etc  were filed evidencing the said Fire Accident. None of the neighbourers were examined in the said context. Therefore, it is difficult to believe the accident.  As seen from condition No. 6 of the policy ( Ex. A2)  and  its terms and conditions it is mandatory on the insured to inform the insurer immediately but in this case, it was belatedly, i.e., after  one year it was  so informed.   The explanation of the complainant that they came to  know only 27.07.2010 about the bank obtaining such an insurance is not convincing.  It was the duty of the bank to inform the same to the complainant but it cannot be a ground for condoning the latches on the part of the complainant.  The Insured ought to have proceeded against the banker and not against the insurer and at least the bank ought to have been impleaded but it was not done. When according to the complainant, the loan was obtained for construction of a building, the complainants ought to have obtained the policy and its details from the bank but they did not do so. For their latches the insurance company cannot be made liable as the OP is dealing with public money. According to the complainant, they were utilizing the building as a go-down for storing foam goods which is not covered under the policy and it is in violation of terms and conditions.  The complainants did not say that the building was let out to SBH. When the complainants were not aware of the policy what made them to get estimated the alleged loss has not been explained.  It is not that difficult to obtain such estimate with anti-date.  Admittedly,  it was not estimated in the presence of the OP. None concerned to the said Ex. A1 estimate were examined to say that in fact on 10.07.2009 itself the complainant requested them to assess the alleged loss to the building and that accordingly they did so and issued it duly. Therefore, no credence needs to be given.  It is much more so, when the complainants failed to file and prove the bills showing the estimated expenditure. There is no basis of the Forum also to award fanciful amount of Rs.3,50,000/- and costs of Rs.1000/-. Thus, viewed in any point, the impugned order is not sustainable and is liable to be set aside. 

10.        In the result, the appeal is allowed and the order of the District Forum is set aside.  Parties shall bear their own costs throughout.

                                                                                    MEMBER

                                                                                    MEMBER

                                                                                    DATED   28.03.2013