Karnataka

Chitradurga

CC/288/2018

Smt Shakira Bi, W/o Chaman Sab, - Complainant(s)

Versus

The Authorised Signatory, United India Insurance Company Ltd., - Opp.Party(s)

Sri.P.S. Sathyanarayana Rao

28 Jun 2019

ORDER

COMPLAINT FILED ON:17/12/2018

DISPOSED      ON:28/06/2019

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHITRADURGA.

 

 

CC.NO:288/2018

 

DATED: 28^th JUNE 2019

PRESENT :-         SRI.T.N.SREENIVASAIAH      :   PRESIDENT                                                     B.A., LL.B.,

                             SRI. SHIVAKUMAR.K.N         :     MEMBER

                                      M.Com., LL.B.,

 

……COMPLAINANT/S	1. Smt Shakira Bi, W/o Chaman Sab, Aged about 50 Years, R/o S.R.Road, Challakere Town.   2. Sri Chaman Sab, S/o Late Dastageer Sab, Aged about 60 Years, R/o S.R.Road, Challakere Town. 3. Smt Rubeena Taj, W/o Latheef Sab K.H, Aged about 29 Years, R/o Janatha Colony, Challakere Town,   4. Sri Latheef Sab K.H, S/o Late Habeebulla Sab, Aged about 37 Years, R/o Janatha Colony,  Challakere Town,   (Rep by Sri.P.S. Sathyanarayana Rao, Advocate)
V/S
…..OPPOSITE PARTY	1. The Authorised Signatory, United India Insurance Company Ltd., Divisional Office, # 34/3, M.M.K.Complex, 2nd Floor Akkamahadevi Road, P.J.Extension,Davanagere-577 002.   2. The Authorised Signatory, United India Insurance Company Ltd., M.O.Office, DRM Hospital Complex, Neelakanteshwara Extn., Chitradurga.   (Rep by Sri.B.M.Ravichandra, Advocate)

ORDER

SRI. T.N. SREENIVASAIAH:   PRESIDENT

The above complaint has been filed by the complainants u/Sec.12 of the C.P. Act, 1986 for the relief to direct the OPs to pay a sum of Rs.17,60,000/- towards loss of crop, Rs.2,00,000/- as compensation along with interest at the rate of 12% p.a towards deficiency in service, dereliction of duties and unfair trade practice, Rs.30,000/- towards loss of earning, mental agony and such other reliefs.

2.      The brief facts of the case of the above complainants are that, they are running a Bio Fuels plant and machineries under the name and style of M/s Rubeena Bio Fuels in land bearing Re.Sy. No.32/1P bearing Khata No.515/32/1AP situated at Bangalore Road, Nagaramgere, Challakere Town, Chitradurga District by obtaining valid license from the Inspector of Factories, Davanagere to run the same.  It is further submitted that, in order to safeguard the schedule property, the complainants have insured the same with the OP insurance company under Policy No.2408821117P9746544 valid for the period from 02.07.2017 to midnight of 01.10.2018 by paying premium amount of Rs.12,498/- and complainants are paying the premium amount to the OPs without fail.  It is further submitted that, the above said property is also financed under Karnataka State Financial Corporation, Chitradurga, the said authority has inspected the industry and given certificate pertaining to Inspection and valuation report.  It is further submitted that, unfortunately on 04.02.2018, the schedule property met with an heavy and disastrous fire accident, due to the said accident, many motors, machineries, shed roofed building and many more equipments were completely burnt and incurred heavy loss to an extent of Rs.17,60,000/-.  The Station Officer, Fire Brigade Station, Challakere has given certificate pertains to fire mishap and the media has been published in detail.  It is further submitted that, the complainants have approached and informed about the incident to the OP and also the complainant has lodged a complaint before the Challakere Police and a case in Crime No.1/2018 has been registered and the Sub-Inspector of Police after his investigation, filed the charge sheet.  Thereafter, the complainants submitted all the required documents claiming compensation to the OP, but the OPs have not settled the actual/genuine claim of the complainants.  Thereafter, the complainants approached the OPs so many times through phone/letter but, the OPs have given evasive replies and not paid the claim amount to the complainants.  The OPs intentionally drag on the matter by giving lame, evasive and untenable reasons in order to escape from their liability and all the efforts of the complainants went in vain, which caused the complainants to suffer mental agony, torture and financial crisis, it prima-facie shows that the OPs are intentionally, willfully delaying in settling the actual claim of the complainants, which leads to deficiency of service, dereliction of duties rendering to their esteemed customers.  The cause of action for this complainant arose when the complainants have issued legal notice to the OPs on 29.10.2018, for that the OP No.1 has replied denying all the allegations made by the complainants and repudiated the claim of the complainants, which is within the jurisdiction of this Forum.  Therefore, the complainants respectfully prayed before this Forum to allow their complaint with cost. 

3.      On service of notice, OPs appeared through Sri. B.M. Ravichandra, Advocate and filed version.  OPs have taken a main contention that, the complainants have not approached this Forum with clean hands as required under C.P Act.  It is further submitted that, the OP has issued standard fire and special perils policy bearing No.2408821117P109746544 in favour of M/s Rubeena Bio Fuels for the period from 02.10.2017 to 01.10.2018 covering the building for a sum of Rs.62,37,000/-, Rs.41,95,000/- for plant and machineries and stocks for Rs.10,00,000/- in total for a sum of Rs.1,14,32,000/- which consists of the above mentioned building, plant and machinery and stock of G.N. Husk, Coffee Husk and all kinds of Husk used as a raw material for manufacturing briquettes at Rs.10,00,000/- subject to terms and conditions.  It is further submitted that, the intimation of fire loss was reported to the OP on 05.02.2018 at about 12-30 PM and  the OP has deputed one surveyor by name B.V. Kumar Swamy to conduct preliminary survey to know the extent of loss and to give information about the claim.  The OP insurance company after receipt of claim form and estimate, the OP No.1 has deputed one B.R. Manjunath, the surveyor for assessment of loss, who after going through all the records and papers comes to the conclusion that, the destroyed property is not financed by KSFC and the same is different from the insured under the policy as the OP has insured the factory building, plant and machinery installed and stock of raw materials.  It is further submitted that, the reported fire loss is not the one insured by the OP as the destroyed sheds are temporary one and they have also leased to third parties and who stored their stock and insured with some other insurance company.  Based on the papers submitted and the final surveyor has assessed the loss towards stock at Rs.2,80,000/- only and the surveyor has not at all recommended for admissibility of claim, since the said loss is not covered under the policy issued to M/s Rubeena Bio Fuels and accordingly, the OP has repudiated the claim of the complainant on 06.08.2018.  Hence, prayed for dismissal of the complaint. 

4.      On behalf of complainants, complainant No.4 has examined as PW-1 by filing affidavit evidence and the documents Ex.A-1 to A-11 were got marked and closed their side. On behalf of OP, one Sri. T. Nagalingachari, Divisional Manager of OP has examined as DW-1 by filing the affidavit evidence and Ex.B-1 to B-8 documents have been got marked and closed their side.  

5.      Arguments of both sides heard.

6.      Now the points that arise for our consideration for decision of above complaints are that;

(1)  Whether the complainants prove that the OP has committed deficiency of service in settling the claim of the complainants and entitled for the reliefs as prayed for in the above complaint?

              (2) What order?

          7.      Our findings on the above points are as follows:-

          Point No.1:-In Negative.

          Point No.2:- As per final order.

REASONS

8.      It is not in dispute that, the complainants are running a Bio Fuels plant and machineries under the name and style of M/s Rubeena Bio Fuels in land bearing Re.Sy.No.32/1P bearing Khata No.515/32/1AP situated at Bangalore Road, Nagaramgere, Challakere Town, Chitradurga District by obtaining valid license from the Inspector of Factories, Davanagere to run the same and the same has been insured the same with the OP insurance company under Policy No.2408821117P9746544 for the period from 02.07.2017 to midnight of 01.10.2018 by paying premium amount of Rs.12,498/-.  The complainants are paying the premium amount to the OPs without fail.  The above said property is also financed under Karnataka State Financial Corporation, Chitradurga.  The said authority has inspected the industry and given certificate pertaining to Inspection and valuation report.  Unfortunately, on 04.02.2018, the schedule property met with a heavy and disastrous fire accident.  Due to the said accident, many motors, machineries, shed roofed building and many more equipments were completely burnt and incurred heavy loss to an extent of Rs.17,60,000/-.   The Station Officer, Fire Brigade Station, Challakere has given certificate pertains to fire mishap and the media has been published in detail.   The complainants have approached and informed about the incident to the OP and also lodged a complaint before the Challakere Police and a case in Crime No.1/2018 has been registered.  After the investigation, the Sub-Inspector of Police filed the charge sheet.  The complainants have submitted all the required documents claiming compensation to the OP.  But the OPs have not settled the genuine claim of the complainants.  Thereafter, the complainants approached the OPs so many times through phone and letter.  But, the OPs have given evasive replies and not paid the claim amount to the complainants.  It prima-facie shows that the OPs are intentionally, willfully delaying in settling the actual claim of the complainants, which leads to deficiency of service, dereliction of duties rendering to their esteemed customers.   

9.  We have gone through the entire documents filed by the complainants and OPs.  There is no dispute between the parties that the complainant is having insurance policy with respect to Re.Sy.No.32/1P and 32/1A1A3 bearing Khata No.515/32/1AP situated at Nagaramgere, Bangalore road, Challakere town, Chitradurga District.  The Policy No.2408821117P9746544 is valid for the period from 02.07.2017 to 01.10.2018 and the complainant has paid the premium amount of Rs.12,498/-.  The arguments advanced by the complainant that, the complainant has obtained the policy covers the main factory building, plant and machinery installed therein and stock of the raw materials.  The Advocate for the OP argued that, the policy is covered only for constructed building, materials and instruments in the building and not covers the four sheds which were subsequently constructed.  The insurance policy produced by the complainant also shows the building, materials and instruments in the building.  Such being the case, the repudiation made by the OP is sustainable.  The KSFC also given report which shows that, the four sheds which were constructed subsequently are not covered under the policy as they are recently constructed.  The complainant has paid the premium only for the building, materials and instruments in the building and not for the four sheds which were subsequently constructed.  Therefore, this Forum comes to the conclusion that, the repudiation made by the OPs is just and proper and accordingly, this Point No.1 is held Negative to the complainant.     

    10.     Point No.2:- As discussed on the above point and for the reasons stated therein we pass the following:-

ORDER

The complaint filed by the complainant U/s 12 of C.P Act 1986 is dismissed.  No order as to costs.

(This order is made with the consent of Member after the correction of the draft on 28/06/2019 and it is pronounced in the open Court after our signatures)         

 

                                     

MEMBER                                      PRESIDENT

 

-:ANNEXURES:-

 

Witnesses examined on behalf of Complainant:

PW-1:  Complainant No.4 by way of affidavit evidence.

Witnesses examined on behalf of OP:

DW-1:  Sri. T. Nagalingachari, Divisional Manager of OP by way of affidavit evidence. 

Documents marked on behalf of Complainants:

01	Ex-A-1:-	License dated 23.01.2012
02	Ex-A-2:-	Insurance policy
03	Ex-A-3:-	KSFC Transaction list
04	Ex-A-4:-	Inspection and Valuation report of KSFC
05	Ex-A-5:-	FIR with complaint
06	Ex-A-6:-	Estimates
07	Ex-A-7:-	Report given Fire Brigade Officer, Challakere
08	Ex.A-8:-	Paper publication
09	Ex.A-9:-	Letter of OP No.1 dated 06.08.2018
10	Ex.A-10:-	Legal notice dated 29.10.2018
11	Ex.A-11:-	Letter of OP No.1 dated 12.11.2018

 

Documents marked on behalf of OPs:

01	Ex-B-1:-	Terms and conditions of policy
02	Ex-B-2:-	Original survey report of B.R. Manjunath
03	Ex-B-3:-	Preliminary survey report of B.V.Kumaraswamy
04	Ex-B-4:-	Claim for and estimate
05	Ex.B-5:-	Spot Mahazar and statements
05	Ex-B-6-	Fire Brigade Report
06	Ex-B-7:-	Photographs
07	Ex-B-8:-	Proposal and KSFC letter

 

 

          MEMBER                                        PRESIDENT

Rhr**