ORDER

 15.11.2017

Smt. Renu Sinha, Member (F)

                           This appeal is  against the order dt. 06-05-2015, passed by the District Forum Sasaram, Rohtas, in Complaint Case No. 67/12, wherein it was directed to op no. 1 & 2 Insurance co. to pay Rs. 18 lacs to complainant within two months, failing which the above amount shall carry interest @9% p.a from the date of order till payment.

2.       The complaint case filed in the District Forum by the complainant Ganga Pd. Gupta the proprietor of the Firm Basantji Oil Extraction at Sasaram dealing with manufacturing of oil from bran, financed by the respondent/ops PNB Sasaram, insured by the appellant/ops The New India Assurance co. for total sum of Rs. 3,30,00,000/- (Three crore thirty lacs) only, which included the insurance against finished and unfinished materials/stocks and Motor & the machinery and building of the said factory under Standard Fire and Special Perils Policy, alleging deficiency in service for nonpayment of the claim amount Rs. 18,50,000/- which destroyed due to sudden typhoon and heavy rain on 07-05-10 within the valid period of the policy and in spite of timely intimation and submission of all the required documents related to settlement of the claim as asked by the Insurance co. on different date till 3-10-10 as mentioned in para 26 of the complaint even after passing of two years the claim not settled, compelled the complainant to file a complaint in District Forum, seeking relief for directions of payment of loss amount with interest and compensation for total sum of Rs. 19,50,000/-. The complainant case was contested by the ops Insurance Co. taken stand that the complaint filed pre matured as the complainant did not submit papers as demanded by the surveyor in spite of several letters, but any how the Surveyor assessed the loss to the tune of Rs. 1,17,050/- only vide final report dt. 24-12-10 which the company ready to settle the claim. The District Forum after hearing the parties and on consideration of the materials produced on their behalf, having found the insurance against the finished and unfinished goods/stocks, motor, machinery, building of the said premises M/s Basant Ji Oil Extraction with appellant/ops insurance co. for sum of Three crore and thirty lacs only and the incident of loss caused due to sudden rain water entered in to premises occurred on 07-05-10 within the valid period of the policy not in dispute and the basis of the letters produced by complainant as evidence sent to complainant by the insurance co. proved that even after having received all the required documents which were made available by complainant and timely intimation of the incident, the insurance co. did not settle the claim deliberately on one reason or other, the District Forum held deficiency in service on part of ops Insurance co. and also the assessment of loss as assessed by the surveyor not correct and proper in view of the evidences produced by the complainant and accordingly passed the impugned order, directing the ops Insurance co. for payment of sum of Rs. 18 lacs only to complainant on account of loss of insured goods.

3.         Being aggrieved with the order of the District Forum, the appellants Insurance Co. have come in appeal stating that the District Forum without consideration of the Surveyor report which is an important piece of document in settlement of claim and without any supporting documents with respect of loss to the tune of Rs. 18 lacs produced by the complainant, passed the impugned order with direction to pay the entire claim amount to complainant, is not proper and justified and therefore the impugned order is fit to be set aside.  

4.                Heard the counsels for the parties. Perused the materials available on record along with the impugned order as well as the survey report in detail.

5.                          Admittedly, the finished and unfinished stocks, Motor & Machinery and the building of the premises/factory dealing in manufacturing of oil from bran of the complainant running in name of M/S Basant Ji Oil Extraction situated at Baijala, Sasaram, Rohtas was insured with the appellants Insurance co. for total sum of Rs. 3,30,00,000/- (Three crores thirty lacs) was financed by the PNB Sasaram and the occurrence of the incident of cyclone and heavy rain on 07-05-10 caused to damage the stocks as well as machinery and part of building is not in dispute. The appellants Insurance co. ready to pay the amount of loss as assessed by the Surveyor to the tune of Rs. 1,17,090/- only against the insurance claim of the complainant for total worth Rs.  18,50,000/- which included the value of loss of stock items of finished goods to Rs. 14,00,000/-, loss of cooling tower Rs. 3,50,000/- and loss of asbestos sheet Rs. 1ac and along with a list of wet items.

6.                  It appears from the final survey report dt. 24-12-10 that after intimation to appellant insurance co. for loss due to natural calamity occurred on 13-06-09, the complainant submitted the all required documents related to settlement of claim to insurance co. such as sale Tax Return from 1-4-09 to 31-03-10, sale register from 1-04-09 to 7-05-10, and the retail invoice for sale of bran oil from 30-04-10 to 7-05-10 along with monthly stock statement submitted to Bank and the balance sheet and profit and loss account for the financial year 2007-08 and 2008-09 in support of the claim and but it appears that the surveyor having accepted the loss, while assessment not considered the above documents and arrived at the net loss to the tune of Rs. 1,17,050/- only, where as the District Forum having found loss of the stocks to the tune of Rs. 15 lacs on the basis of the entire supporting documents as mentioned above produced by the complainant which were available to surveyor. Hence, for the reason, we do not find any justification for making assessment of net loss to the tune of Rs. 1,17,050/- only by the surveyor in survey report dt. 24-12-10 which cannot be taken in to consideration. As such we are agreeable to loss suffered by the complainant to the tune of Rs. 15 lacs only and the appellants Insurance co. is liable to pay the aforesaid loss amount along with compensation and litigation cost Rs. 1 lac only to complainant.

7.            Accordingly, the insurance claim of the complainant/respondent stands modified to Rs. 15 lacs only to be paid by the appellants Insurance co. instead of the insurance amount awarded by District Forum Rs. 18 lacs on account of loss of stocks.

8.               The appellants Insurance co. are directed to pay Rs. 15 lacs to the complainant/respondent along with compensation and litigation cost to sum of Rs. 1 lac within two months of this order, failing which the total awarded amount shall carry interest @8% p.a from the date of filing of the complaint till the date of payment to complainant.

9.               In result, the order of the District Forum is affirmed with above modification. The appeal stands dismissed.   

S.K. Sinha                             Renu Sinha                                        Upendra Jha

President                              Member(F)                                         Member(M)

        Mukund