THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, AMRITSAR

Consumer Complaint No. 320-14

Date of Institution : 6.6.2014

Date of Decision : 2.11.2015

Varinder Singh son of S. Gurdip Singh, Prop. Of Baba Budha Weaving Factory, Gali No. 3, Jaura Phatak, Krishna Nagar, Amritsar ...Complainant

Vs.

The Oriental Insurance Company Limited, Madan Mohan Malviya Road, Amritsar through its Branch Manager/Principal Officer

....Opp.party

Complaint under section 12/13 of the Consumer Protection Act, 1986

Present : For the complainant : Sh.Davinder Gujral,Advocate

For the opposite party : Sh. Sandeep Khanna,Advocate

Quorum : Sh. Bhupinder Singh, President ,Ms. Kulwant Bajwa,Member &

Sh.Anoop Sharma,Member

Order dictated by :-

Bhupinder Singh, President

1 Present complaint has been filed by Varinder Singh under the provisions of the Consumer Protection Act alleging therein that he obtained Fire Insurance Policy bearing No.235300/11/2013/452 for a period from 2.3.2013 to 1.3.2014 with sum assured Rs. 35 lacs from the opposite party vide which the complainant got insured all the stocks/material lying in his factory at the time of obtaining the said policy. According to the complainant fire broke out in the factory of the complainant due to sparking of electricity on 13.4.2013 and the fire was brought under the control by the employees/family members and neighbours and the fire brigade was not called. There was no doubt on anybody for causing the fire. As a result of the said fire, the bardana/packing material etc of the value of Rs. 1,11,020/- lying in the factory premises of the complainant were completely destroyed. Said material was purchased by the complainant from Jain Brothers, Amritsar against bill No. 3364 dated 31.3.2013 for Rs. 22,834/- and from Gurbachan Printers , Industrial Area,Amritsar vide bill No. 215 of the value of Rs. 88,186/-. As the stocks/material was duly insured with the opposite party, as such matter was reported to the opposite party and claim was lodged with the opposite party for the settlement of his claim and for disbursement of the amount of Rs. 1,11,020/- . The complainant also submitted all the relevant documents with the opposite party as required by them and after receiving all the necessary documents,, opposite party assured that his claim would be settled within the shortest period. The survey was also conducted by the surveyor of the opposite party in April 2013. Thereafter the complainant has been visiting the opposite party time and again requesting them to settle the claim, but to no avail. Complainant received a letter dated 16.1.2014 vide which the opposite party informed the complainant that the complainant has not informed the fire brigade and has also not reported to the police and the items affected in the incident are not covered in the policy. Complainant has alleged that fire was brought under control by the employee/family members and the neighbours and as such the fire brigade was not called. As there was no doubt on any body for causing the fire and as such the matter was also not reported to the police. Complainant has alleged that the agent who affected the fire policy assured the complainant that all the goods/material lying in his factory were insured and the complainant was never intimated that the bardana/packing material is not covered under the policy. Even the terms and conditions were never made available to the complainant. The claim of the complainant has been rejected on flimsy ground vide letter dated 11.4.2014 that the plastic bags/bardana are not covered in the policy. Alleging the same to be deficiency in service complaint was filed seeking directions to the opposite party to pay the insurance claim of Rs. 1,11,020/- alongwith interest. Compensation of Rs. 1,00,000/- alongwith litigation expenses were also demanded.

2. On notice, opposite party appeared and filed written version in which it was submitted that opposite party is only liable to pay any claim if the same is covered under the insurance policy and if any loss is suffered with respect to any other item

which is not maintainable nor the opposite party is liable to pay the said claim. It was submitted that parties are governed as per terms and conditions of contract of insurance. In the present case the claim already stands repudiated on the basis of survey report dated 11.4.2014. It was submitted that complainant had neither informed the fire brigade nor had informed the alleged incident to the police which clearly shows that the claim is not a genuine one. It was further submitted that at the time of obtaining the policy in question, the complainant was not having any insurable interest pertaining to the goods i.e. packing material alleged to have lost in fire. It was submitted that the policy in question commenced on 2.3.2013, whereas the said goods i.e. packing material was purchased by the complainant on 29.3.2013 and 31.3.2013, as such any alleged loss to the said goods is not payable. While denying and controverting other allegations, dismissal of complaint was prayed.

3. Complainant tendered into evidence his affidavit Ex.CW1/A alongwith documents Ex.C-1 to Ex.C-8.

4. Opposite party tendered into evidence affidavit of Sh.R.K.Sharma,Divisional Manager Ex.OP1, repudiation letter Ex.OP2 and OP3, copy of policy schedule Ex.OP4.

5. We have carefully gone through the pleadings of the parties, arguments advanced by the ld.counsel for the parties and have appreciated the evidence produced on record by both the parties with the valuable assistance of the ld.counsel for the parties.

6. From the record i.e.pleadings of the parties and the evidence produced on record by both the parties it is clear that complainant obtained Fire Insurance Policy bearing No.235300/11/2013/452 for a period from 2.3.2013 to 1.3.2014 with sum assured Rs. 35 lacs from the opposite party thereby the complainant got insured all the stocks/material lying in his factory at the time of obtaining the said policy. The complainant alleged that fire broke out in the factory of the complainant due to sparking of electricity on 13.4.2013. However, fire was brought under the control by the employees/family members and neighbours and the fire brigade was not called. There was no doubt on anybody for causing the fire. As a result of the said fire, the bardana/packing material etc of the value of Rs. 1,11,020/- lying in the factory premises of the complainant were completely destroyed. Said material was purchased by the complainant from Jain Brothers, Amritsar against bill No. 3364 dated 31.3.2013 for Rs. 22,834/- and from Gurbachan Printers , Industrial Area,Amritsar vide bill No. 215 dated 29.3.2013 of the value of Rs. 88,186/-. the matter was reported to the opposite party and claim was ldoged. The complainant also submitted all the relevant documents with the opposite party. The opposite party also appointed surveyor, who conducted survey in April 2013. However, opposite party repudiated the claim of the complainant vide letter dated 11.4.2014 Ex.OP2 on the ground that the packing material like Plastic bags and bardana were not covered in the policy. Moreover, the complainant has violated the terms and conditions of the policy. He did not inform the fire brigade when the fire broke out and no report was lodged with the police by the complainant regarding the fire which broke out in the factory premises of the complainant. Ld.counsel for the complainant submitted that all this amounts to deficiency of service on the part of the opposite party qua the complainant.

7. Whereas the case of the opposite party is that the opposite party was liable to pay the claim if the same had been covered under the Insurance policy. The opposite party repudiated the claim of the complainant vide letter dated 11.4.2014 Ex.OP2 on the basis of survey report dated 19.11.2013 that the claim of the complainant was regarding the items which were not covered under the Insurance policy. Moreover, the complainant has violated the terms and conditions of the policy . As per terms and conditions of the policy Ex.C-1 produced by the complainant himself the insured was bound to inform the fire brigade immediately and other statutory bodies like nearest police station in case of fire at the premises of the complainant. But the complainant neither informed the fire brigade nor the police. As such the opposite party cannot authenticate the genuineness of the fire that allegedly broke out at the premises of the complainant. As per the fire policy in question, stock of yarns of all kinds and similar other goods lying in the premises are the subject matter of insurance . However, stock i.e. packing material like plastic bags and bardana were not covered under the Insurance policy. The claim of the complainant is regarding loss of packing material only i.e. plastic bags and bardana which are not covered under the policy. Ld.counsel for the opposite party submitted that opposite party has rightly repudiated the claim of the complainant as per terms and conditions of the policy. As such there is no deficiency of service on the part of the opposite party qua the complainant.

8. From the entire above discussion, we have come to the conclusion that complainant got fire insurance policy from the opposite party covering stock of yarns of all kinds/cloth or blankets, shawls, carpets, all kinds of finished or un-finished goods or similar other goods of the similar trade lying in the factory premises of the complainant as per policy Ex.C-1. The complainant alleges that fire broke out in the factory premises of the complainant on 13.4.2013 due to sparking of electricity as a result of which packing material i.e. plastic bags and bardana of the value of Rs. 1,11,020/- lying in the factory premises of the complainant were destroyed . In this regard the complainant prodcued retail invoice regarding purchase of this packing material i.e. plastic bags of the value of Rs. 88,186.40 paise as per bill Ex.C-2 which are allegedly purchased from Gurbachan Printers, Industrial Area, Amritsar by the complainant and the packing material of Rs. 22834/- as per bill Ex.C-3 which was allegedly purchased by the complainant from Jain Brothers vide bill dated 31.3.2013 Ex.C-3. The complainant alleges that this packing material was destroyed in the fire which broke out at the factory premises of the complainant on 13.4.2013. Claim was lodged by the complainant with the opposite party. Opposite party appointed surveyor, who surveyed the factory premises and submitted his report dated 19.11.2013 in which he has submitted that packing material i.e. plastic bags and bardana are not covered under the policy. As per the policy only stock of yarn of all kinds, cloth, blankets, shawls, carpets of all kinds finished and un-finished goods of all kinds and similar other goods of the similar trade were covered under the policy. Nowhere in the policy it has been mentioned that packing material i.e. plastic bags and bardana were covered under the policy. Apart from this as per the policy terms and conditions Ex.C-1 produced by the complainant himself the complainant was required to immediately inform the fire brigade and other statutory bodies like nearnest police station in case any fire, broke out in the factory premises of the complainant. But in the present case the complainant neither informed the fire brigade nor lodged any complaint with the police in this regard. As such the complainant has violated the terms and conditions of the policy. Opposite party wrote letter dated 16.1.2014 Ex.C-7/OP3 asking the complainant that loss regarding packing material like plastic bags and bardana were not covered in the policy and the complainant was also required to explain why he did not inform the fire brigade or to the police in  this regard. But the complainant could not submit any cogent explanation. In these circumstances, we are of the opinion that the complainant has violated the terms and conditions of the policy. More over the packing material i.e. plastic bags and bardana which was allegedly purchased by the complainant after the inception of the policy, is not covered under the policy. As such the opposite party has rightly repudiated the claim of the complainant as per terms and conditions of the policy.

9. Resultantly we hold that complaint is without merit and the same is hereby dismissed with no order as to costs. Copies of the order be furnished to the parties free of costs. File is ordered to be consigned to the record room. Case could not be disposed of within the stipulated period due to heavy pendency of the cases in this Forum.

2.11.2015 ( Bhupinder Singh )

President

/R/ ( Kulwant Kaur Bajwa) ( Anoop Sharma ) Member Member