BEFORE THE DISTRICT CONSUMER DISPUTES

REDRESSAL COMMISSION, JALANDHAR.

Complaint No.399 of 2022

      Date of Instt. 26.10.2022

      Date of Decision: 13.02.2024

Vikramjit Basra aged 47 years, son of Sh. Bihari Lal Basra, Proprietor M/s Basra Karyana Store, near DAV College, Mohalla Kullian, Jalandhar.

..........Complainant

Versus

1.       The New India Assurance Co. Ltd. New India Assurance         Building, 87, M. G. Road, Fort, Mumbai-400001 through its      Chairman-cum-Managing Director.

2.       The Branch Manager, The New India Assurance Co. Ltd.,       Kamaldeep Mansion, G. T. Road, Phagwara-144401.

….….. Opposite Parties

Complaint Under the Consumer Protection Act.

Before:        Dr. Harveen Bhardwaj             (President)

                   Smt. Jyotsna                            (Member)                                          Sh. Jaswant Singh Dhillon       (Member)   

Present:       Sh. I. S. Bhatia, Adv. Counsel for Complainant.

                    Sh. R. K. Sharma, Adv. Counsel for OPs.

Order

Dr. Harveen Bhardwaj (President)

1.                The instant complaint has been filed by the complainant, wherein it is alleged that the complainant is the proprietor of M/s. Basra Karyana Store and had been carrying on the retail karyana shop near DAV College, Mohalla Kullian, Jalandhar. The complainant was running the shop in the ground floor portion and the first floor portion was being used as godown for stocking the goods and second floor portion was let out to a tenant named Manoj Mistry. The complainant purchased Policy No.36100348210600000029 dated 05.06.2021 in the name of M/s. Basra Karyana Store, Near DAV College, Jalandhar valid from 05.06.2021 upto 04.06.2022 midnight for a sum of Rs.25,30,000/- which included Rs.25,00,000/- against fire and allied perils-building of Class-A construction, Rs.25,30,000/- against fire and allied perils-contents excluding money and valuables, Rs.25,30,000/- against burglary and house breaking etc. The complainant paid a sum of Rs.5,940/- in cash to the OP No.2 on account of premium and GST vide receipt dated 01.06.2021. On 03.12.2021 at about 10.30 PM, one Manoj Kumar, Mistry a tenant living in the second floor portion of the shop owned by the complainant informed the complainant that some burning smell was coming from the shop. The Complainant immediately rushed to his shop and opened the locks of the iron shutter and was shocked to find that flames of fire were burning inside the shop. The complainant immediately rang at 101 and called the fire brigade to control the fire. After ten minutes, the fire brigade squared rushed to the shop of the complainant and tried to put off the fire. After struggling hard, the fire brigade employees were able to control the fire by 12.30 AM. The fire had broken out on account of electric short circuit and was accidental. Due to the fire which broke out in the shop one LED 32", one inverter, two weighing machines, two ceiling fans, one fridge make Godrej, one home theatre, one tulu pump besides the stocks of karyana goods and cosmetics worth Rs.15,00,000/- was destroyed. The total loss suffered by the complainant due to damage caused by fire is assessed at Rs.27,97,808/- as per details attached. However, the liability of the OPs is limited to Rs.25,30,000/-. The complainant has suffered 100% loss and has been ruined due to the accidental fire occurred in his shop on the night of 03.12.2021. The entire building of the shop, furniture, fixtures, stocks, interiors etc. have been completely destroyed and complainant has come on road. His only source of livelihood has been destroyed and he has become a pauper due to the financial loss and loss of business suffered by him. The tenant Manoj Kumar, Mistry has also left the rented premises and complainant has also suffered loss of rental income. The complainant reported the matter to P.S. Division No.1, Jalandhar and general dairy details No.025 dated 04.12.2021 at 15.51 hours has been registered with P.S. Division No.1, Jalandhar. Municipal Corporation, Jalandhar has charged a sum of Rs.5,000/- on account of fire brigade services and the Assistant Divisional Fire Officer, Municipal Corporation Fire Brigade, Jalandhar has submitted its Report No.FBJ/518 dated 09.12.2021. The complainant had immediately reported the fire incident through email to OP No.1 who had deputed Surveyors and Loss Assessors to assess the fire loss and to submit their report for settlement of the claim. Complainant has been cooperating with the Surveyors and has submitted all the relevant documents and complied with the necessary formalities but the settlement of the genuine claim of complainant has been unreasonably delayed. The complainant is running from pillar to post for redressal of his genuine grievances. But till date, complainant has not received any information regarding the status of his claim. There was inordinate and unreasonable delay on the part of the opposite parties in settlement of the fire claim lodged by the complainant. Therefore, the complainant was compelled to serve the opposite parties with a legal notice dated 19.09.2022 calling upon them to settle the fire claim of the complainant. The legal notice was duly dispatched under registered postal covers but despite receipt of the legal notice, the opposite parties have neither sent any reply nor complied with the lawful demands contained in the said legal notice. Almost eleven months have passed since the occurrence but the OPs have not settled the claim of complainant till date. The OPs are putting off complainant on one or the other pretext and he is further suffering financial loss. The complainant has taken a loan from HDB Financial Services and the said Company which is a subsidiary of the opposite parties is also unduly harassing the complainant on account of non-payment of the installments and the interest on the loan amount is also piling up. Due to non settlement of the claim, the complainant is unable to get the shop repaired and to restart his business as he has no means to carry out the required repairs/reconstruction of the building and to purchase furniture, fixtures, fittings and stocks etc. The complainant has lost his only source of livelihood due to the fire occurrence. The complainant is facing grave financial hardship, undue harassment, mental tension and loss of health and reputation due to non-settlement of the claim for which the OPs are to be held liable and as such, necessity arose to file the present complaint with the prayer that the complaint of the complainant may be accepted and OPs be directed to settle the fire claim of the complainant and to indemnify the financial loss suffered by the complainant to the tune of Rs.25,30,000/- i.e. the insured value although the actual financial loss suffered by the complainant is much more. Pendentelite and future interest on the claim amount @ 12% per annum, from the date of lodging of the complaint till realization be also granted. Further, OPs be directed to make payment of compensation in favour of the complainant, to the tune of Rs.1,00,000/-, for causing mental tension and harassment to the complainant and Rs.50,000/- as litigation expenses.

2.                Notice of the complaint was sent to the OPs, who filed reply and contested the complaint by taking preliminary objections that the complaint is pre-matured and the same is liable to be dismissed on this score only. On Intimation of loss to the stock, furniture and building in a fire incident which occurred on the night of 03-12-2021, the OPs deputed Sh. Rajesh Mahajan, Surveyor and Loss Assessor to assess the loss whereupon the said Surveyor and Loss Assessor served a letter dated 06-12-2021 upon the insured M/S Basra Karyana Store, for submission of necessary documents mentioned in the letter for processing the claim, but the insured did not respond. When the insured did not respond, the surveyor and loss assessor served a second letter dated 09-03-2022 asking the insured to comply with the requirements, but again the insured did not respond fully and insured partly complied with the formalities. The surveyor and Loss Assessor further served a letter dated 26-04-2022 asking the insured to explain the below mentioned queries:

                   i) As regards your claim of damages to Building for       Rs.4,72,597/- as per the insurance policy, the shop is owned by        Basra Karyana Store, but as per papers submitted the building          belongs to Sh. Bihari Lal, Please explain how the policy has been    taken in the name of Basra Karyana Store when the building is owned by Bihari Lal.

                   ii) As regards the claim for losses of Rs. 6,10,000/- for   electric items, containers etc.. the Surveyor and Loss Assessor has given the observation that as per insurance policy, the total   coverage is only of Rs.30,000/- for LCD 32", Fridge, Stereo only.     Other items are not covered under the policy.

                   iii. As regard claim of loss of stock worth Rs. 19,60,879/-        only one trading Account from 01-04-2021 to 02-12-2021 and      purchase account for period 01-04-2021 to 26-1-2021 have been      provided and that the said information submitted by the insured       is not sufficient to assess the loss and requested to provide the     documents and detailed information so that the loss could be assessed,

                   but the insured did not respond. The complainant did not co-operate with the Surveyor and Loss Assessor and neither submitted the requisite documents demanded by the Surveyor and Loss Assessor nor have complied with the necessary formalities. The Complainant cannot take advantage of his own wrongs. As the complainant did not submit the requisite document, the Surveyor and Loss Assessor submitted his Final Survey report dated 30-04-2022 with the opposite parties assessing the Net Loss to the tune of Rs.7,70,000/- with the observations that the complainant did not provide any information regarding Bank, failed to explain why the shop in question owned by Bihari Lal has been insured in the name of Basra Karyana Store, failed to provide map as well as valuation of the shop, failed to explain the property tax receipt produced is for only 17 Sq. Ft. and relates to which property whereas the shop in question is 45 Sq Ft., on inquiry from M/s Gaurav Dhall & Associates, Chartered Accountants as to whether the trading account has been signed by them whereupon it was it was stated that the trading account has not been signed by Chartered Accountant and that purchase of stock of Rs. 12,06,196 in month of November, 2021 is doubtful and has not provided the details of source of funds to purchase the same and that it has been observed by the Surveyor and Loss Assessor that insured has purchased goods worth Rs.12.06 Lacs during the month of Nov. 21 and Rs. 0.61 Lakh during month of December and that as per volumetric analysis, in shop of 45 Sq. yards Karyana goods worth Rs. 19.60 Lacks   cannot be stored. As the matter was doubtful, the opposite parties deputed M/s Third Eye Investigators to investigate the matter, who submitted its Investigation report dated 28-09-2022 with the OPs with the observations that though the fire loss is there, but the quantum could not be ascertained completely because non-cooperative attitude of the insured and such non-cooperative attitude of complainant resulted in delay of report. Instead of cooperating with the OPs and providing the requisite documents and fulfilling the formalities, the complainant has filed the present complaint which is without merits and deserves dismissal. On merits, it is admitted that the complainant purchased a Shopkeepers Insurance Policy in the name of Basra Karyana Store vide policy bearing No.36100348210600000029 for the period 05-06-2021 to 04-06-2022 subject to terms and conditions of the insurance policy, but the other allegations as made in the complaint are categorically denied and lastly submitted that the complaint of the complainant is without merits, the same may be dismissed.

3.                Rejoinder to the written statement filed by the complainant, whereby reasserted the entire facts as narrated in the complaint and denied the allegations raised in the written statement.

4.                In order to prove their respective versions, both the parties have produced on the file their respective evidence.

5.                We have heard the learned counsel for the respective parties and have also gone through the case file very minutely.

6.                It is admitted that the complainant purchased a Shopkeepers Insurance Policy in the name of Basra Karyana Store, vide policy bearing No.36100348210600000029. The policy has been proved as Ex.C-2/O-1. The complainant has alleged that on 03.12.2021, his shop caught fire and flames of fire were burning inside the shop. Fire Brigade was called to control the fire which was controlled by 12:30 AM. The complainant has further alleged the fire had broken out on account of electric short circuit and was accidental. He has further alleged that loss suffered by the complainant due to damage caused by the fire was assessed at Rs.27,97,808/-, but the liability of OPs is limited to Rs.25,30,000/-. He has produced on record the estimate of loss Ex.C-3 and balance sheet Ex.C-4. The matter was reported to the Municipal Corporation Fire Brigade Jalandhar. He has proved on record the copy of General Dairy Detail Ex.C-5, copy of report Ex.C-6 and copy of receipt issued by Municipal Corporation Jalandhar Ex.C-7, photographs have been proved Ex.C-8 to Ex.C12. The complainant has proved on record the legal notice Ex.C-13 to Ex.C-15. The complainant has alleged that despite lodging the claim and giving intimation and completing all the formalities, the OP has not settled the claim of the complainant and has alleged deficiency in service and unfair trade practice on the part of the OPs.

7.                The OPs on the other hand alleged that on receiving the intimation of loss, the Surveyor and Loss Assessor was appointed, who wrote letters to the complainant for submission of necessary documents, but the complainant did not cooperate and did not file the documents. He has proved on record the letter Ex.O-2 to Ex.O-4. Copy of Surveyor report Ex.O-5 and Investigation Report have also been proved.

8.                The fact regarding insurance has been admitted. The documents have been proved, intimation to the OP regarding the loss and report has been admitted and proved. According to the OP, the complainant did not submit the requisite document as per letter dated 06.12.2021 and 26.04.2022, whereas the contention of the complainant is that all the documents were supplied to the OPs and they themselves have produced all the documents alongwith written statement in the present complaint.

9.                In such circumstances, the complainant is directed to settle the claim within 30 days as per the documents filed on record by the complainant and the OP. If any further document is required, the complainant is directed to supply those documents, if these are in his possession, failing which the OPs will be liable to pay compensation of Rs.20,000/- to the complainant. It is further ordered that if the complainant is not satisfied with the settlement of the claim made by the OPs, then he is at liberty to file a fresh complaint. Thus, this complaint is disposed of. This complaint could not be decided within stipulated time frame due to rush of work.

10.              Copies of the order be supplied to the parties free of cost, as per Rules. File be indexed and consigned to the record room.

Dated          Jaswant Singh Dhillon    Jyotsna               Dr. Harveen Bhardwaj     

13.02.2024         Member                    Member               President