BEFORE THE DISTRICT FORUM: KURNOOL

Present: Sri. T.Sundara Ramaiah, B.Com B.L., President

And

Sri. M.Krishna Reddy, M.Sc., M.Phil., Male Member

And

         Smt. S.Nazeerunnisa, B.A., B.L., Lady Member

Monday the 5^th day of March, 2012

C.C.No.84/2011

Between:

N.Venkateswara Babu, S/o N.Sunkanna,

Resident of Plot No.103,Lakshmi Gardens,Joharapuram Road,Kurnool - 518 002.                                 

…Complainant

                                       -Vs-

Divisional Manager, New India Assurance Company Limited,

H.No.40/526, HDCT Complex, 1^st Floor, Kurnool - 518 004.                            

...Opposite ParTy

This complaint is coming on this day for orders in the presence of Sri P.Siva Sudarshan, Advocate for complainant and Sri Mohammad Ishaq, Advocate for opposite party and upon perusing the material papers on record, the Forum made the following.                             

             ORDER

                 (As per Sri. M.Krishna Reddy, Male Member)

   C.C. No.84/2011

1.     This complaint is filed under section 11 and 12 of C. P. Act, 1986 praying a direction on opposite party for the payment of:-

1. Rs.2,16,444/- towards compensation for flood damaged house with 24% per annum interest from 02-10-2009;

1. Rs.50,000/- towards mental agony;

1. Cost of the complaint;

2.    In a nutshell the case of the complainant is that his own house bearing No.103 in Lakshmi Graden, Joharapuram Road, Kurnool was insured with opposite party for Rs.6,00,000/- for the period from                           09-11-2005 to 08-11-2020 by paying a premium  of Rs.4,628/-.  He obtained house loan from S.B.I., Budhawarpet, Kurnool.  His house was inundated in the flood on 02-10-2009and suffered severe damage.  He submitted claim form to opposite party along with an estimate for the damage, prepared by a qualified engineer for Rs.2,50,000/-.  But opposite party paid only Rs.33,556/- through a cheque on 05-03-2010. Relied on the report prepared by an unqualified person, opposite party declined to pay the remaining amount though he received a presentation from the complainant.  Nettled with the attitude of the opposite party this complaint is filed before this Forum seeking appropriate reliefs.

3.     Ex.A1 to Ex.A7 and sworn affidavit are filed by the complainant to support his claim.

4.     In brief the case of opposite party is that, admitting the liability of the complainant’s claim within the preview of terms and conditions of the complainant’s policy.  Opposite party appointed a surveyor as soon as he received intimation about the ravage of the house in the flood on 02-10-2009.  The surveyor after thorough examination of the insured building, assessed the loss to Rs.33.556/- and submitted his report on 27-11-2009.  As per the recommendation of the surveyor, Rs.33,556/- was paid  by way of cheque bearing No.499155 dated 05-03-2010 drawn on Andhra Bank, N.R.Pet, Kurnool.  The discharged voucher for full and final settlement of the claim signed by the complainant is also filed in the Forum.  The complainant accepted Rs.33,556/- without protesting the settlement and again filed a case with ulterior motive of getting an undue and wrongful gain.  Hence complainant is not entitled to claim a sum of Rs.2,16,444/- with interest as there is no deficiency on his part.  In view of the circumstances mentioned above, opposite party prayed the Forum for the dismissal of the case awarding exemplary costs of Rs.20,000/- for frivolous claim.

5.     Ex.B1 to Ex.B4 and sworn affidavit are filed by opposite party to support his case. 

6.     Both parties filed written arguments.

7.     Hence the points for consideration are:

1. Whether the complainant made out a case to prove deficiency on the part of opposite party?

1. Whether the complainant is entitled for reliefs?

1. To what relief?

8.      POINTS i and ii:- Ex.A3/Ex.B1, the standard fire and special perils policy bearing No.611500/11/05/00355 covering the risk on residential building situated at Plot No.103, Lakshmi Gardens, Joharapuram Road, Kurnool for the period from 09-11-2005 to               08-11-2020.  Ex.A1 a copy of detailed cum abstract estimate for Rs.2,50,000/-  dated 27-10-2009 prepared by V.J. Associates to the loss occurred to the complainant’s house in the flood on 02-10-2009.  Ex.B2 the copy of surveyor’s report assessing the loss to the insured house for Rs.33.556/-.  Ex.B3 the settlement intimation voucher, signed by the complainant on 05-03-2010.  The contention of the complainant is that the opposite party was wrong in settling the claim to Rs.33,556/- taking the loss assessment report prepared by a unqualified surveyor, who ignored certain items of the building detailed in Ex.A1 while estimating the loss.  The contention of opposite party is that, the surveyor assessed the loss in detail considering all areas of the building as per the terms and conditions of the policy and also allowed reasonable amount for cleaning and debris removal.  Hence no deficiency.            

As per the policy condition in Ex.B1 only the residential building is insured.  It does not cover the risk of the area out side the building and the compound wall.  According to Ex.B2 the FFF items are also not insured, hence the furniture, cupboards etc are also excluded from coverage.  Therefore discounting of items in S.No.1, 2, 6 (Vi) in Ex.A1 while estimating the loss by the surveyor is justified.  Surveyor considered the details in S.No.5, 6 (i), (iii), (iv) and 8 of Ex.A1 and assessed the loss to Rs.53,.200/-, deducted Rs.18,500/- depreciation arriving to a net loss of Rs.33,556/-.  In the details of S.No.3 and 4 of Ex.A1 the surveyor noticed no damages and already allowed cleaning charges.  But in the report of surveyor Ex.B2, he admitted that all doors and windows at S.No.6 (ii) (v) of Ex.A1 were de-shapped and the sanitary fixers at S.No.7 of Ex.A1 need cleaning and refitting.  He also allowed 50% depreciation to the value of these items.    But in the loss assessment by the surveyor they were not considered.  Hence Forum holds that the deficiency on the part of opposite party in proved, entitling the complainant to receive additional compensation.  

9.      Point No.iii:- The complainant claimed Rs.2,16,444/-.  This is excessive.  Within the preview of the terms and conditions of the policy and surveyor’s report as discussed in para 8 above the complainant is additionally entitled 50% compensation on the items 6 (ii), (V) and 7 of Ex.A1.  The total value of these three items sum up to Rs.44,800/- (8,400 + 26,400 + 10,000) and 50% of it would become to              Rs.22,400/-.  Therefore in addition to Rs.33,556/- the compensation already paid, an amount of Rs.22,400/- is  granted as additional compensation to the complainant to the loss suffered  to his house.   Rs.2,000/- is sanctioned as compensation to the complainant towards mental agony for not properly dealing the claim settlement that made him to approach this Forum. 

10.    In the result, the complaint is partly allowed directing the opposite party to pay Rs.22,400/- to the complainant in addition to the amount of Rs.33,556/- paid already as compensation of the loss occurred to his house, Rs.2,000/- towards compensation for mental agony and Rs.500/- as cost of the case.  The time for compliance is one month from the date of receipt of this order.

        Dictated to the stenographer, transcribed by her, corrected and pronounced by us in the open bench on this the 5^th day of March, 2012.

  Sd/-                                  Sd/-                                   Sd/-

MALE MEMBER                      PRESIDENT                 LADY MEMBER

                                 APPENDIX OF EVIDENCE

                                    Witnesses Examined

For the complainant : Nil                 For the opposite party : Nill

List of exhibits marked for the complainant:-

Ex.A1                Photo copy of V.J. Associates Detailed Cum Abstact

Estimate for Rs.2,50,000/- dated 27-10-2009.

Ex.A2.       Photo copy of Letter by opposite party to complainant

                dated 05-03-2010.

Ex.A3                Photo copy of Policy bearing No.611500/11/05/00355.

Ex.A4                V.J. Associates Detailed Cum Abstact Estimate for

                Rs.2,50,000/- dated 27-10-2009.

Ex.A5                Photo copy of Letter by complainant to Branch

                Manager S.B.I., Kurnool dated 05-10-2009.

Ex.A6                Repudiation Letter dated 05-03-2010.

Ex.A7                Photo copy of Policy bearing No.611500/11/05/00355.

List of exhibits marked for the opposite party:-

Ex.B1                Policy bearing No.611500/11/05/11/00000355 along

with terms and conditions.

Ex.B2                Office copy of Survey Report dated 27-11-2009.

Ex.B3                Settlement Intimation Voucher for Rs.33,556/-

dated 05-03-2010.

Ex.B4                Repudiation Letter dated 05-03-2010.

  Sd/-                                  Sd/-                                   Sd/-

MALE MEMBER                 PRESIDENT                   LADY MEMBER

    // Certified free copy communicated under Rule 4 (10) of the

A.P.S.C.D.R.C. Rules, 1987//

Copy to:-

Complainant and Opposite parties  :

Copy was made ready on             :

Copy was dispatched on               :