By Sri. MOHANDASAN.K, PRESIDENT

1. The complaint in short is as follows: -

      The complainant is the proprietor of M/s gold Aluminium Centre, Palunda, Chungathara-PO dealing with the sale of goods and accessories, aluminium sheets and all the materials required for aluminium fabrication works.  The complainant availed loan on the basis of stock intrade with the Punjab National Bank, Nilambur branch.  The stock in trade was insured with the opposite party. 

2.     During the month of August 2019, heavy rain occurred at Palunda and nearby places which caused heavy flood, disruption to the communication system and damage to properties. On 08/08/2019 the entire area where the shop of complainant is situated was surrounded by flood water and the flood water entered into the shop of the complainant causing heavy damage to the stock in trade.   In fact, all the stock kept at the shop were damaged and the flood water containing mud made it worthless for sale.  The complainant is residing at a faraway place and so he could not reach his shop for the coming few days.   But when he reached at the shop, he could see that the stock in trade were completely covered with flood water and mud.  In order to save the reputation and good will of the firm he sold the damaged materials for scrap value. The complainant intimated the damage caused to the stock in trade to the bank and as informed by the bank that the entire stock in trade was insured with the opposite party, the complainant filed claim for insurance on 28/08/2019 with all the relevant documents. 

3.     The opposite party through their agent approached the complainant and enquired of the damages caused to the firm and the stock in trade.    An officer of the opposite party assured the complainant that he would favourably submit a report to the insurance company.  But to the surprise of the complainant, he received a letter on 29/05/2020 to the effect that the insurance claim is rejected.  The complainant had submitted all the documents required by the opposite party and also had assured to submit any documents is required in further. The complainant had filed report on stock in trade certified by the Chartered Accountant on the day of incident.   The opposite party averred in the notice that the insurance surveyor reported that   there is no loss is seen suffered by the complainant as submitted by the complainant. The letter also contended that the insurance company had deputed an investigator, who endorsed the findings of the insurance surveyor. The complainant submitted that the opposite party had not enquired about the incidence by approaching nearby residents or shops.  The complainant further submit that the Insurance company had allowed compensation to nearbyproprietor. Hence, the complainant claimed for a compensation of Rs.  27,00,000/- along with interest and cost. 

4.      On admission of the complaint notice was issued to the opposite party and the opposite party entered appearance and filed version.   The opposite party denied the entire averments and allegations in the complaint and contented that the complaint is not maintainable either under law or on facts and the complainant is not entitled to receive any amount from the opposite party as compensation. 

5.       The opposite party admitted that there was an insurance policy at the time of incidence as contented by the complainant.  It is also admitted that on 08/08/2019 there was heavy rain in Palunda and nearby places, but it is incorrect to say that there happened a flood at Palunda.   The opposite party denied the averments that due to the flood, mud and water has entered to the shop of the complainant and the averments is made only for the purpose of getting compensation from this opposite party. If at all any loss had occurred as alleged due to flood, the complainant should have reported the facts, to the Police department, Revenue authorities, Fire force, KSEB, Panchayath and Geological authorities.  But in this complaint, the complainant has not done any of such acts.  The opposite party further contented that the complainant himself admits that before intimating the Insurance company, the complainant has sold out all the materials which had been affected by the flood and has repainted his shop room and after that he has intimated the bank and the opposite party.

6.    The opposite party submitted that they appointed a surveyor as well as an investigator to enquire and report about the loss, if any affected to the complainant.   The surveyor inspected the shop room and has filed a detailed survey report in which he has reported that there is no loss happened to the insured in the insured premises.   The surveyor also reported that the proprietor of chaithanya tiles, the nearest shop of the complainant’s shop, Mr. Philip informed himthat the rain water from the rubber estate gone through the drainage between his and the complainant’s shop and the rubber estate behind the shop.   The surveyor further explained that the water entered his shed only up to a height of 4 inches only and did not affect any other area.   The chaithanya tile is the nearest shop to that of the complainant’s shop.  The shop next to the chaithanya tiles is a sanitary shop and the opposite side of the insured premises is a residence, both of them confirmed that no flood has affected that area. The opposite party further contented that the averment of the complainant that, he was ready and willing to produce the documents from the panchayath and village authorities is false and even after repeated demands the complainant was not able to produce any such documents to the surveyor or to the opposite party.  The opposite party further submit that the complainant has not produced the proof of the accident-flood and damages, spot photos, details of sale of salvage, purchase bills etc.  The opposite party contented that the surveyor sent a letter to the complainant and accordingly the complainant approached the surveyor’s office and submitted some photos, and thereafter the surveyor visited the spot again and verified the photos and found that the photos did not match the insured premises. 

7.       The opposite party admitted that heavy rain has occurred on 08/08/2019 but the complainant is not affected due to the heavy rain, complainant has made misrepresentation of facts to get compensation from the opposite party.  As per the investigation conducted by the opposite party came to know that the representation made by the complainant is false and baseless and so the claim was repudiated.  The opposite party submitted that there is no deficiency of service and the complainant is not entitled any compensation from the opposite party and the compliant is liable to be dismissed with compensatory cost of the opposite party.

8.   The complainant and opposite party filed affidavit and documents. The documents on the side of complainant marked as Ext. A1 to A18.  The documents on the side of opposite party marked as documents Ext. B1 to B3.  Ext. A1 document is the claim repudiation letter issued by the opposite party to the complainant dated 29/05/2020.  Ext. A2 is copy of insurance policy No. 1010041118P110772209. Ext. A3 is copy of stock statement issued by Punjab National Bank dated 31/05/2019.  Ext. A4 is copy of stock statement issued by Punjab National Bank dated 30/06/2019.  Ext.A5 is a copy of stock statement issued by Punjab National Bank dated 31/07/2019. Ext. A6 series are Registration Certificate – Form GST REG-06. Ext. A7 is copy of D& O licence issued by Chungathara Grama Panchayth dated 13/07/2016. Ext. A8 is Balance sheet as on 31/03/2019 of Gold Aluminium Centre, Palunda chungathara, Malappuram.  Ext. A9 is Statement of Profit and Loss dated 31/03/2019. Ext.A10 is Balance sheet dated 08/08/2019. Ext.A11 is Profit and Loss Statement dated 08/08/2019.  Ext. A12 is copy of GF Plan and Elevation of the complainant’s shop dated 25/11/2019. Ext. A13 is stock details dated 08/08/2019.  Ext. A14 is copy of Loss report dated 08/08/2019, Ext. A15 is a copy of Aadhaar card of complainant.  Ext. A16 is copy of Pan Card of complainant.Ext. A17 is copy of Certificate from chungathara Grama Panchayath dated 28/07/2020. Ext. A18 is copy of certificate issued by Chungathara Village Officer dated 29/07/2020.  Ext. B1 is copy of insurance policy No. 1010041118P110772209  valid from 20/11/2018 to 19/11/2019.  Ext. B2 is copyof Private and Confidential Fire (Final) Survey Report along with photographs. Ext. B3 is copy of Kerala Flood Claims -2018- Procedure for Claim Intimation dated 29/08/2019.

9.    Heard the complainant and opposite party, perused affidavit and documents. Both parties filed notes of arguments also. The following points arise for consideration: -

1. Whether there is anyloss sustained to the complainant due to heavy rain occurred in Palunda and nearby places on 08/08/2019?
2. Whether there is deficiency in service on the part of opposite party?
3. Relief and cost?

10. Point No.1 :-

        The definite case of complainant is that on 08/08/2019 the entire area, where the shop of complainant is situated was surrounded by flood water and the flood water entered at the shop of the complainant causing heavy damage to the stock in trade.   The complainant submitted further that all the stock kept at the shop were damaged and the flood water containing mud made it worthless for sale.  The complainant was residing faraway place and he could not reach his shop for the coming days also.  When he reached at the shop, he found that the stock in trade were completely covered with flood water and mud.  In order to save the reputation and good will of the firm, the complainant sold the damaged materials for scrap value. The complainant intimated the damage caused to the stock in trade to the bank and informed by the bank that the entire stock in trade was insured with the opposite party and filed claim application for insurance on 28/08/2019 with all the relevant documents. 

11.     The opposite party though admitted that there was heavy rain in Palunda and nearby places, but denied there happened a flood at Palunda.  It is further contended that due to the flood, mud and water has entered in to the shop of the complainant is absolutely false and baseless and is made only for the purpose of getting compensation from the opposite party.  The opposite party contented that   if at all any loss had occurred due to flood, the complainant should have reported the above facts to the Police department, Revenue authorities, Fire force, KSEB, Panchayath and Geological authorities.   The complainant has not done any such act. It is further contented that the complainant sold out all the materials which had been   affected by the flood and has repainted his shop room and after that complainant intimated the bank and the opposite party. 

12.       The complainant produced Ext.A1 to A18 documents to establish the case of complainant. Ext. A1 is none other than the claim repudiation letter issued by the opposite party explained the cause for the repudiation of claim.  Ext. A2 is copy of insurance policy which is admitted one.  Ext.A3, A4, A5, A6, A7, A8, A9, A10, A11, A12, A13 are details of stock statements and documents related to shop.  Ext. A14 is a loss report without any authenticity.  Ext. A15 and A16 are personal documents of the complainant i.e., photocopy of Aadhaar card and Pan Card. Ext. A17 and A18 are certificates issued by the Vice president of Chungathara Grama Panchayath and Village Officer, Chungathara respectively. Among the documents produced by the complainant Ext. A17 and A18 are the two documents stating about incident of damages sustained to the complainant. But both these documents are not sufficient to disclose the exact extend of damages caused to the complainant. Ext.A14, the loss report prepared by complainant himself shows that the complainant sustained loss around Rs. 26,61,957/-. Considering the nature of claim, the loss sustained is a substantial one.  But the complainant has not produced a proper document to show his loss as claimed.  The complainant submitted that in order to save the reputation and good will of the firm, he sold the damaged materials for scrap value.   But the complainant has not revealed to whom these materials sold and what extent the value he received by selling the damaged materials.  The complainant   has not produced documentary evidence to show his damages. The contention of the opposite party is that, the complainant has not reported to any authority about the incident including Police department, Revenue authorities, Fire force, KSEB, Panchayath and Geological authorities.  The certificate issued by the Panchayath, Vice President and the Village Officer are not supported with any documentary evidence.  The complainant himself admits that he could report the loss only on 28/08/2019 that is after 20 days of incidence.  The complainant has not produced even photographs of the incident and even not cited witness from the neighbouring places of his shop who can depose to the fact.   On the other hand, the opposite party contented that immediately on receipt of report of the incidence, surveyor was deputed and thereafter an investigation was conducted also.   Both the surveyors report   and investigation report reveal that the complainant did not suffer any loss as result of the alleged incidence.  The opposite party further produced certain photographs of the shop of the complainant. It also does not reveal damages as claimed by the complainant. 

13.    Considering the documents produced by the complainant as well as the opposite party, the Commission is not convinced with claim of complainant.  The complainant failed to establish the loss sustained to the complainant due to the incidence.   It is admitted that, the articles dealt by the complainant was of goods and accessories, aluminium sheets, and other materials required for aluminium fabrication works.  If at all   flood water entered into the shop the reliquaries will be available in the shop.   He could not establish the same by producing any documents either through photographs or through the person to whom the scrap was sold.  So the Commission finds that the complainant failed to establish the claim as contented in the complaint. 

14.        In the light of above facts and circumstances, the Commission is not inclined to allow the claim of the complainant since, the Commission could not conclude that the complainant sustained loss as claimed in the complaint, from the perusal of the documents.  Hence the other points for consideration does not arise and the complaint stands dismissed. 

Dated this 25^th  day of January, 2023.

MOHANDASAN K., PRESIDENT

PREETHI SIVARAMAN C., MEMBER

MOHAMED ISMAYIL C.V., MEMBER

APPENDIX

Witness examined on the side of the complainant                   :Nil

Documents marked on the side of the complainant                : Ext.A1to A18

Ext. A1 :  Document is the claim repudiation letter issued by the opposite party to

                 the complainant dated 29/05/2020.

Ext. A2 : Copy of insurance policy No. 1010041118P110772209.

Ext. A3 : Copy of stock statement issued by Punjab National Bank dated 31/05/2019.  Ext. A4 : Copy of stock statement issued by Punjab National Bank dated 30/06/2019.  Ext.  A5 : Copy of stock statement issued by Punjab National Bank dated 31/07/2019. Ext. A6  : Series are Registration Certificate – Form GST REG-06.

Ext. A7  : Copy of D & O licence issued by Chungathara Grama Panchayth dated

                13/07/2016.

Ext.A8  : Balance sheet as on 31/03/2019 of gold aluminium centre, Palunda

                chungathara, Malappuram. 

Ext. A9  : Statement of profit and loss dated 31/03/2019.

Ext. A10: Balance sheet dated 08/08/2019. 

Ext. A11 : Profit and loss statement dated 08/08/2019. 

Ext. A12: Copy of GF Plan and Elevation of the complainant shop dated 25/11/2019. Ext. A13 : Stock details dated 08/08/2019. 

Ext. A14 : Copy of loss report dated 08/08/2019.

Ext. A15 : Copy of Aadhaar card of complainant. 

Ext. A16 : Copy of Pan Card of complainant.

Ext. A17 : Copy of certificate from chungathara Grama Panchayath dated 28/7/2020.

Ext. A18 : Copy of certificate issued by Chungathara Village Officer dated 29/7/2020. 

Witness examined on the side of the opposite party                      : Nil

Documents marked on the side of the opposite party                    : Ext. B1 to B 3

Ext. B1 : Copy of insurance policy No.1010041118P110772209 valid from 20/11/2018

                to 19/11/2019.

Ext.B2  : Copy of Private and Confidential Fire (Final) Survey Report along with

               photographs.

Ext.B3 : Copy of Kerala Flood claims -2018-procedure for claim intimation dated

              29/08/2019.

MOHANDASAN K., PRESIDENT

PREETHI SIVARAMAN C., MEMBER

MOHAMED ISMAYIL C.V., MEMBER