Haryana

StateCommission

A/92/2015

NATIONAL INSURANCE CO.LTD. - Complainant(s)

Versus

SHRE VALIABH INDUSTRIES - Opp.Party(s)

NITIN GUPTA

08 Nov 2016

ORDER

STATE CONSUMER DISPUTES REDRESSAL COMMISSION, HARYANA PANCHKULA

 

Appeal No.92 of 2015

Date of the Institution:13.01.2015

Date of Decision: 08.11.2016

 

1.      National Insurance Co. Ltd., Fountain Chowk, Workshop Road, Yamunanagar, through its Branch Manager.

2.      National Insurance Co. Ltd., Divisional Office, Railway Road, Opposite Rukmani Devi Hall, Ambala Cantt. Through its Divisional Manager.

Now represented through authorized signatory of Regional Office, SCO No.337-340, Sector-35/B, Chandigarh.

                                                                             .….Appellant

Versus

 

M/s Shree Vallabh Industries, Khajuri Road, Ram Vihar Colony, Yamuna Nagar through its Sole Proprietor Sh. Manish Jain S/o Sh. Bharat Bhushan Jain, R/o 37-40, Shivaji Park, Model Town, Yamuna Nagar (Haryana).

                                                                             .….Respondent

CORAM:    Mr.R.K.Bishnoi, Judicial Member

                    Mrs. Urvashi Agnihotri, Member

 

Present:-    Mr.Nitin Gupta, Advocate counsel for the appellant.

Mr.A.S. Khara, Advocate counsel for the  respondent.

 

O R D E R

URVASHI AGNIHOTRI, MEMBER:

 

1.      National Insurance Company Ltd. and Anr. - OP is in appeal against the Order dated 11.12.2014 passed by the learned District Consumer Disputes Redressal Forum, Yamuna Nagar (for short ‘District Forum’), whereby the complaint of M/s Shree Vallabh Industries has been allowed directing the OPs to pay Rs.1,61,761/- alongwith interest @9% p.a., Rs.10,000/- as mental agony and Rs.10,000/- as litigation expenses.

2.      Briefly stated, the complainant purchased a plot in the year 2000 and established their business in the year 2006 by constructing a shed over the plot. The complainant took one insurance coverage against building, plant and machinery, stocks in godown/in process/in open of his factory i.e. Shree Vallabh Industries for the total sum insured of Rs.35,00,000/- vide cover Note No.0066123 w.e.f. 04.05.2009 to 03.05.2010 form the OPs by paying Rs.15,945/- as premium. On 08.09.2009, a trolly- tractor collided with the pillar of the shed whereupon the shed collapsed. The complainant lodged DDR No.9 on 08.09.2009 with the concerned police station and also informed the OP. M/s Duggal Gupta, Surveyors Pvt. Ltd. were deputed to assess the loss. The complainant lodged the claim with the OPs for Rs.4,60,000/-  but the same was rejected by the OP on the ground that the complainant did not have any insurable interest. Aggrieved against this act of the OPs, the complainant approached the District Forum to direct them to pay a sum of Rs.4,60,000/- alongwith interest @24% p.a. and also to pay compensation as well as litigation expenses.

3.      According to the OPs, the complainant got insured from the OPs its building for a sum of Rs.10,00,000/- besides getting its plant machinery and stock insured for a sum of Rs.25,00,000/- vide Policy No.420402/11/09/310000127 valid from 04.05.2009 to 03.05.2010. An intimation dated 08.09.2009 was received by the OPs from the complainant that the building of factory suffered damages and it was requested to arrange for surveyor to assess the loss. On intimation a  surveyor was appointed and he visited the spot and assessed the loss. There was an  under insurance and account of said fact, the average clause was applied and the surveyor after taking into account the above said factor assessed the net loss to the tune of Rs.1,06,856/- vide his report dated 06.03.2010. Since, the insured failed to prove the insurable interest in the building in question, the OPs vide its registered letter dated 12.03.2010 legally and justifiably repudiated the claim of the complainant on the fact and grounds stated above. However, the learned District Forum rejected the pleas raised by the OPs and accepted the complaint vide order dated 11.12.2014 by granting the aforesaid relief. 

4.      Against this Order of the learned District Forum, the OP has filed Appeal before us contending that the learned District Forum has accepted the complaint without any legal justification. The appellant reiterating the submissions made by it before the District Forum has stressed that there was no deficiency in service on the part of the OP and claim was rightly repudiated.

5.      We have heard the learned counsel for the parties and have also gone through the record.  From the perusal of the record, it is evident that the complainant had got the premises insured with the OP by paying the requisite premium. The factory shed got collapsed when the tractor trolly struck the same. The damage caused to the factory building was assessed by the surveyor, who was deputed by the OP as Rs.1,06,856/-, after taking into account the average and Excess Clause deduction. Regarding the evidentiary value of the Surveyor’s report, the law stands settled on the subject that the assessment made by the Surveyor has to be honoured and accepted by the Civil Courts and Tribunals under the Consumers jurisdiction. Therefore, we have no hesitation in modifying the award passed by the learned District Forum by reducing the amount of compensation from Rs.1,61,761/- to Rs.1,06,856/- as assessed by the Surveyor of the Company. So far as the contention of the appellant regarding the absence of insurance interest with the claimant is concerned, the same is wholly without any basis. It has been settled by the Hon’ble National Commission in case titled United India Insurance Company Ltd. Vs Hassan Sultan Hadaf “III (1992) CPJ page 64 (NC) that it is the duty if the insurer to satisfy himself before issuing a policy of insurance that the insured has in insurable interest or not. Therefore, the contention is wholly unsustainable in law. Accordingly the appeal stands partly allowed with the direction that the amount awarded by the learned District Forum in favour of the complainant i.e. Rs.1,61,761/- has been reduced to  Rs.1,06,856/- alongwith interest @9% p.a. from the date of institution of the complaint till the date of realization with the litigation charges of Rs.10,000/-.

6.      The statutory amount of Rs.25,000/- deposited at the time of filing the appeal be refunded to the appellant against proper receipt and identification in accordance with rules.

November 08th, 2016

Mrs.Urvashi Agnihotri, Member, Addl.Bench

R.K.Bishnoi, Judicial Member Addl.Bench

 

R.K.