`D.O.F: 29/04/2015
D.O.O:10/07/2019
IN THE CONSUMER DISPUTES REDRESSAL FORUM, KASARAGOD
CC.No.110/15
Dated this, the 10th day of July 2019
PRESENT:
SRI.KRISHNAN.K :PRESIDENT
SRI.RADHAKRISHNAN NAIR.M : MEMBER
B.Sadasivan, aged 49 years,
S/o. Kunjiraman,
R/at Ambapuram, Mangad, Udma Village : Complainant
(Adv: Rajitha.P)
- The Oriental Insurance Company Ltd.
Regd and Head Office
A 25/27 –Asaf Ali Road
New Delhi -110002
- The Branch Manager,
Oriental Insurance Company, Kasaragod: Opposite Parties
( Adv: S. Mahalinga)
-
SRI.KRISHNAN.K :PRESIDENT
This is a complaint filed under section 12 of Consumer Protection Act for an order directing the opposite parties to pay a sum of Rs. 18,00,000/-(Rupees Eighteen Lakhs) as compensation to the complainant.
The case of the complainant in brief as follows:-
The complainant is running a furniture shop by name S.S Furniture at Udma in door No. 3/138 of Udma Grama Panchayath. The shop and goods therein are insured with the Opposite Party for Rs.17,00,000 (Rupees Seventeen lakh) against fire and damage, vide policy No: 441602/11/2015/2. The Complainant’s further case is that fire erupted in the furniture shop due to electric short circuit on 19/08/2014 at about 3.50AM. Fire Force come and fire controlled. Fire force officers prepared a report they estimated Rs.20,00,000/- towards loss of goods Rs. 50,000/- loss of buildings loss of goods inside worth Rs.3,50,000/- the incident is duly reported to Bekal Police and they conducted investigation and convinced with the facts of fire and consequent loss of the complainant. The complainant filed application before the Opposite Party for insurance claim. The Opposite Party appointed surveyor to assess the loss. The surveyor filed his report assessing the loss at Rs.1,57,000/-. Surveyor observed that the loss is due to fire and it is covered under the policy conditions. Being not satisfied with the amount paid by the Opposite Party complainant filed this complaint.
The Opposite Parties entered appearance before the Fora and submitted their written version. Opposite Party No:2 admitted the insurance and intimation of fire and loss the complainant. As per their version, surveyor report dated 20/02/2015 the total loss assessed at Rs.157,452 /- and the claim of complainant is thus settled for the said amount and same was paid to the complainant as full and final satisfaction of compensation and therefore complainant is not entitled for any further relief and prayed for dismissal of the complaint.
On the basis of rival contentions in the pleadings the following issues are framed for consideration.
- Whether there is any deficiency in service on the part of Opposite Parties
- Whether complainant entitled to insurance benefits compensation and cost etc.
- If so what reliefs?
Complainant filed proof affidavit. The documents Ext A1 to A9 series are marked from his side.
A1 is report of fire Force Ext A2is the letter of Electrical Inspector to S.I of Police. Ext A3 letter issued by President Udma Grama Panchayth Ext A4 is certificate issued by village officer. Insurance policy marked as Ext A5 and Ext A6 is letter from Bekal Police confirming the short circuit A7 is the job work register and Ext A8 and A9 series in register of details of work order. The complainant is examined as Pw1 and Complainant witness Pw2 from complainant side and cross examined Opposite Party produced documents marked as Ext B1 to B3. Ext B1 is surveyor report B2 is the Insurance Policy certificate and B3 is the discharge voucher signed by the complainant. The Opposite Party examined surveyor as Pw1.
The case of the complainant is that the compensation allotted by the Opposite Party is vary less than the actual loss and he entitled for the full insurance benefit. The Opposite Party admitted the accident and also admitted liability to pay insurance benefits. But quantum alone is in dispute. The Opposite Party limited their liability to the amount fixed by surveyor and his report Ext B1. Ext B3 is admittedly the discharge voucher signed by complaint admitting receipt of Rs. 157452/- towards full final settlement.
It is seen that furniture business of the complainant was completely destroyed and dream to rebuild it was shattered. Ext B1 surveyor report shows that he has verified the stock register of insured in detail and found in order and claim is found convincing and genuine and recommended settlement. But not assessed loss of stock. It is shown as Rs. 158052/-. The loss of (machinery) is shown as Rs.9400/- salvage value is shown as Rs.1800/- . In the report it is stated that SS furniture is a reported institution in the district. Ext B2 insurance policy shows that sum insured for finished products at Rs 2,00,000/- wooden sheet chemical at Rs. 10,00,000/- and plant and machinery at Rs.5,00,000/-. Plant and machinery loss estimated only 9400/- where as in Ext A1 report by Fire force department it is shown as Rs. 3,50,000/- for loss of articles itself. On the basis of evidence made available and report by fire Force and nature of insurance value of furniture items, we allow the claim at Rs. 3,50,000/- Plant and machinery loss estimated at Rs. 3,00,000/-. Total loss estimated at Rs. 6,50,000/-. Amount paid to the complainant is Rs.1, 57,452 balance amount payable is Rs.4,92,548/-. Thus we find that there is a deficiency in the services of the Opposite Party in denying eligible insurance benefits us. The complainant is entitled to the insurance benefits covered by the policy and Opposite Party are liable to pay insurance benefits to the complainant to the tune of Rs.6,50,000/- above. After adjusting the amount of Rs.157452/-already paid . There is a balance payable is Rs.4,92,548/- serious deficiency of service of Opposite Parties in compensating the complainant and for that complainant is entitled to receive a sum of Rs. 20,000/-as compensation and also Rs.3000/- as litigation costs.
In the result complaint is allowed in part directing the Opposite Parties jointly and severally to pay Rs.4, 92,548/- towards insurance benefits, with interest at 6% per annum from the date of complaint till payment. Opposite Parties also directed to pay Rs. 20,000/-(Rupees Twenty thousand only) towards compensation and Rs.3000/- (Rupees Three thousand only) as cost of litigation with 30 days of receipt of the order. Complainant is entitled to execute the order as per the provisions of Consumer Protection act 1986.
Sd/- Sd/-
MEMBER PRESIDENT
Exhibits
A1. 19.08.2014: Copy of report in Fire force
A2. 03.09.2014: the letter of Electrical Inspector to S.I of Police
A3. 07.09.2014: letter issued by President Udma Grama Panchayth
A4. 18.09.2014 : certificate issued by village officer
A5.16.04.2014 : Insurance policy
A6. 21.08.2014 : letter from Bekal Police
A7.Stock register
A7(a). Job work Register
A8 & A9 series - Register of details of work order
B1.Final Survey Report
B2. Insurance Policy
B3. Discharge voucher
Witness Examined
Pw1. Sadashivan.B
Pw2. Shamsudeen
Dw1. Thamban Nambiar.M.P
Sd/- Sd/-
MEMBER PRESIDENT
Forwarded by Order
Senior Superintendent
Ps/
