Haryana

StateCommission

A/310/2015

ORIENTAL INSURANCE CO. - Complainant(s)

Versus

JAI TRACTORS - Opp.Party(s)

D.C.KUMAR

10 Sep 2015

ORDER

STATE CONSUMER DISPUTES REDRESSAL COMMISSION HARYANA, PANCHKULA

                                                 

First Appeal No  :          310 2015

Date of Institution:      01.04.2015

Date of Decision :       10.09.2015

 

The Oriental Insurance Company Limited, Branch Office, Rohtak Road, Charkhi Dadri through Shri S.P. Singh, Regional Manager, The Oriental Insurance Company Limited Regional Office, LIC Building, II Floor, Jagadhri Road, Ambala Cantt.

                                      Appellant-Opposite Party

Versus

 

M/s Jai Tractors Delhi Road, Charkhi Dadri, District Bhiwani, through its partner Jai Singh s/o Sh. Shri Krishan Resident of Charkhi Dadri, District Bhiwani.

                                      Respondent-Opposite Party

 

CORAM:             Hon’ble Mr. Justice Nawab Singh, President.

                             Shri B.M. Bedi, Judicial Member.

                             Mrs. Urvashi Agnihotri, Member.                                                                                                                               

Present:               Shri D.C. Kumar, Advocate for appellant.

Shri R.S. Dhull, Advocate appearing on behalf of Shri Sumit Sangwan, Advocate for respondent.

 

                                                   O R D E R

 

B.M. BEDI, JUDICIAL MEMBER

 

The Oriental Insurance Company Limited (for short ‘the Insurance Company’)-Opposite Party, is in appeal against the order dated February 13^th, 2015, passed by District Consumer Disputes Redressal Forum (for short ‘District Forum’), Bhiwani.

2.      M/s Jai Tractors-Complainant-respondent, purchased ‘Standard Fire & special Perils Policy’ (Annexure C-2) from the opposite party for the period from 4.2.2010 to 3.2.2011, vide which stock of tractors spare parts was insured. The sum insured was Rs.50,00,000/-. On 22.09.2010 due to heavy rain, the insured stocks etc were submerged/damaged in the water. Information being given, the Insurance Company appointed Shri S.P. Goyal, Surveyor, who inspected the spot and submitted report Annexure R-4 whereby he assessed the loss at Rs.9,29,676/- after deducting salvage value (Rs.6,19,703/-). However, the Insurance Company repudiated complainant’s claim, vide letter dated 09.03.2011 (Annexure R-5) stating that the loss was not covered under the policy.  Complainant filed complaint under Section 12 of the Consumer Protection Act, 1986.

3.      The Insurance Company-opposite party, contested complaint by filing reply. It was stated that the surveyor of the Insurance Company assessed loss at Rs.9,29,676/- and after deducting the salvage value, the payable claim was of Rs.3,11,407/-. However, complainant’s claim was not covered under the policy.

4.      Vide impugned order, the District Forum allowed complaint directing the Insurance Company as under:-

“……..complaint of the complainant is allowed with costs and the respondent company is directed:-

1.    To pay Rs.15,49,459/-along with interest @ 12% p.a. from the date of filing of repudiation till its payment.
2.    To pay Rs.2200/- as cost of litigation.
3.    The complainant is directed to return the salvage to the respondent.”

5.      It is admitted case of the parties, that the complainant had obtained the Insurance Policy Annexure C-2 from the opposite party-Insurance Company. It is also not in dispute that the goods stored in the insured premises were submerged/damaged in rainy water.  It has also come on the record that the surveyor of the Insurance Company assessed the net loss at Rs.9,29,676/- after taking out salvage value at 40% of claimed amount, that is, Rs.6,19,703/- and the payable amount was worked out at Rs.9,29,676/-. Still, the Insurance Company repudiated claim stating that the cause of loss was not covered under the policy.

6.      In support of their respective contentions, both the parties have relied upon the report of the surveyor Annexure R-4. The surveyor in Annexure R-4 (at page 5 of report) under the heading ‘Assessment of loss” worked out calculation of the amount of loss as under:-

 “The insured has claimed loss of Rs.15,49,459/- and has deducted a sum of Rs.5,59,261/- on a/c of salvage value and net claim is Rs.9,90,198/-. However, the salvage value has been taken at for the 40% of the claim amount, which comes to Rs.6,19,703/-, hence, the loss is assessed at Rs.9,29,676/-.

However, the claim is not payable under the policy as the loss has occurred to the reason that water level has come up due to rainy season. The cause of loss is neither covered under flood or inundation. Hence, the claim is not payable under the policy, hence, recommended as “NO CLAIM”.

However, the amount of claim is worked out as under”-

Loss Claimed	15,49,451.00
Less salvage value @ 40%	6,19,783.00
Loss Assessed	9,29,676.00
AMOUNT OF CLAIM	Amount (Rs.)
Loss Assessed*Sum insured=9,29,676*50,00,000=	3,21,407.00
Stock as on date of loss	1,44,62,587
Loss Assessed	3,21,407.00
Less: Policy Clause	10,000.00
Claim Payable	3,11,407.00

(Rs. Three Lakh Eleven Thousand Four Hundred Seven Rupees Only)

However, the claim as “No Claim” as not covered under policy.”

7.      The surveyor has tried to exclude the salvage value at 40% of the amount claimed. The surveyor has not given any basis calculating the salvage at 40%. Even otherwise, though the complainant has himself calculated the loss at Rs.9,90,198/- while the District Forum awarded Rs.15,49,459/- without deducting salvage, which the claimant claimed, yet the opposite party assessed loss at Rs.9,29,676/- which amount they are liable to pay.

8       In view of the above, the impugned order needs to be modified to the extent that the complainant is entitled to be awarded the benefits of insurance to the extent of Rs.9,29,676/-. Hence, the Insurance Company is directed to pay Rs.9,29,676/- to the complainant instead of Rs.15,49,459/-. Rest of the order is maintained.

9.      The impugned order is modified to the extent indicated above and the appeal stands disposed of.

10.    The statutory amount of Rs.25,000/- deposited at the time of filing the appeal be refunded to the complainant against proper receipt and identification in accordance with rules, after the expiry of period of appeal/revision, if any.

 

Announced 10.09.2015

(Urvashi Agnihotri) Member

(B.M. Bedi) Judicial Member

(Nawab Singh) President

CL