CC Filed on 06.06.2008<br /> Disposed on 25.09.2008<br /> BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, KOLAR.<br /> <br /> Dated: 25th Day of September 2008<br /> <br /> PRESENT:<br /> Sri. G.V.HEGDE, President.<br /> Sri. T.NAGARAJA, Member.<br /> Smt. K.G.SHANTALA, Member.<br /> ---<br /> <br /> Consumer Complaint No.51/2008<br /> Between:-<br /> <br /> Sri. Ayub Khan,<br /> S/o Jaleel Khan,<br /> Aged about 30 years,<br /> R/at Ayub Electronics,<br /> Tayalur Village and Post,<br /> Mulbagal Taluk,<br /> Kolar District. Complainant<br /> <br /> (By Advocate Sri. P.V.Srinivasaiah & Others)<br /> <br /> V/s<br /> The United India Insurance<br /> Company Ltd.,<br /> Divisional Office,<br /> B.M.Road,<br /> Robertsonpet,<br /> K.G.F. – 563 122. Opposite party <br /> <br /> (By Advocate Sri. L.N.Ramanatha and Others)<br /> <br /> ORDER<br /> This is a complaint under section 12 of the Consumer Protection Act, 1986 praying for a direction against opposite party to pay a sum of Rs.1,00,000/- with interest and costs etc., towards insurance claim.<br /> <br /> <br /> <br /> CC No.51/2008<br /> 2. The material facts of the complainant’s case may be stated as follows: The complainant was running M/s Ayub Electronics at Tayalur village situated at a distance of about 15 kms from Mulbagal Town. It appears he had obtained loan of Rs.95,000/- from Canara Bank Tayalur in April-2004 to start his business. The complainant was selling electronic goods like TV, VCD, DVD and Cassettes and other electronic spare parts and also tape-records, speakers etc., He obtained shopkeepers insurance policy bearing policy No.071500/48/05/00756 for the period from 26.01.2006 to 25.01.2007 from OP to cover the perils of Fire and Allied Perils in respect of Furniture and Stock in trade kept in the shop for Rs.1,00,000/- and of some other perils as shown in the insurance policy by paying a premium of Rs.577/-. In respect of Fire and Allied perils the risk covered in respect of furniture fittings and stock in trade was Rs.25,000/- and Rs.75,000/- respectively.<br /> <br /> There was fire mishap in the shop of complainant on the night of 11/12.05.2006 destroying the entire materials kept in the shop. On the next day morning he gave complaint before the police giving details of the destroyed stock in trade amounting to Rs.67,275/- and destroyed furniture amounting to Rs.34,000/- in all stating that the total loss was Rs.1,01,275/-. He also gave a representation to Thasildar Mulbagal narrating the destruction of the goods in the shop by fire mishap and claiming compensation from Government. It appears he intimated the incident to OP by letter dated 16.05.2006 regarding the peril due to fire in his shop stating that the total loss was Rs.1,01,275/-. The Insurance surveyor visited the spot on 17.05.2006 for local inspection and found that there was destruction of stock in trade and furniture kept in the shop due to fire. The complainant sent the claim form on 25.05.2006 narrating <br /> <br /> CC No.51/2008<br /> the details in it and giving particulars of destroyed stock in trade and furniture as shown in his complaint before police for Rs.1,01,275/-. Subsequently the complainant replied to the query of OP and the surveyor that all the documents relating to his business were kept in the shop itself and all those documents were burnt in the fire, hence he could not produce any such documents. The grievance of the complainant is that the OP has failed to settle the claim even after sufficient time. <br /> <br /> 3. The OP appeared and admitted the existence of insurance policy as alleged by complainant. It contended that the complainant failed to produce the required documents to assess the loss caused due to fire mishap and thereby the OP could not estimate the loss and thereby there is no deficiency on its part. <br /> <br /> 4. The parties filed affidavits and available documents. We heard the arguments and perused the records.<br /> <br /> 5. The surveyor who visited the spot on 17.05.2006 did not entertain any suspicion regarding the happening of fire accident and the destruction of materials in the shop. The surveyor demanded production of stock book, purchase bills, sales records etc., for estimating the loss caused in the incident. The complainant had replied that no such documents were available as he had kept all such documents in the shop which were also destroyed. Thereafter the surveyor or the OP did not take steps to estimate the loss caused covering the risk in the incident. Merely because the documentary evidence is not available one cannot reject the claim of complainant. There should have been genuine effort to estimate the loss caused due to the incident. <br /> CC No.51/2008<br /> During the hearing of this case the complainant could not produce any duplicate bills for having purchased the materials for his shop prior to the incident, though it was pointed out that such documents are relevant. He stated that production of such duplicate bills is very cumbersome and difficult job. When he was asked on which basis he gave the split up figures and the details of different items and its value in the complaint before police, he could not offer any acceptable explanation. In his complaint he gave the details of total number of different items and value for each such item. It appears he could not have given such precise numbers of items destroyed at least in respect of certain items stated in his complaint. Therefore one can say that the so called particulars given in the complaint is nothing but an approximate estimation made by complainant. Certainly he was interested in claiming compensation on higher side. However as already noted the absence of documentary evidence to estimate the loss, cannot be a ground to hold that loss cannot be estimated at all in the absence of documentary evidence and therefore claim of the complainant should be rejected. <br /> <br /> 6. We think the following are the relevant facts to be taken into consideration for estimating the loss in the present case: The insurance policy for Rs.1,00,000/- was obtained by complainant on 26.01.2006 for a period of one year in respect of stock in trade and furniture. The incident has happened nearly 3½ of months after obtaining the policy. The business was started obtaining loan of Rs.95,000/- in April-2004. The business was being carried in Tayalur village which is admittedly a Hobli head quarters about 15 kms away from Mulbagal Town. There was over due of installments of the loan borrowed from Canara Bank as per their letter dated 12.01.2008. The total amount due was Rs.58,050/- <br /> <br /> CC No.51/2008<br /> as on the date of that letter. The complainant is a physically handicapped person with defect in his leg. The complainant is an interested person to claim compensation on higher side. In a subsequent letter dated 31.01.2008 to OP he claimed that the total worth of the materials destroyed in his shop was Rs.1,33,075/- without giving any particulars for the basis of his estimation. The complainant could have produced certain duplicate purchase bills which he claimed to have obtained at the time of purchase from the places where he purchased the electronic goods, but he did not make efforts for it. It can also be noted that the burden of proving the actual loss cause to complainant due to fire, is on him. Taking into consideration all the above facts, we think 50% of the amount covered under risk may be estimated as the loss incurred due to fire as on that day. The OP should have settled the claim at least for this amount within a period of 3 months from the date of occurrence. As OP failed to do so, interest at 9% per annum may be allowed from 11.08.2006. <br /> <br /> 7. Hence we pass the following:<br /> O R D E R<br /> The complaint is partly allowed with costs of Rs.1,000/-. The opposite party shall pay Rs.50,000/- as compensation with interest at 9% per annum on the said amount from 11.08.2006 till the date of payment, within 45 days from the date of this order. <br /> <br /> Dictated to the Stenographer, corrected and pronounced in open Forum this the 25th day of September 2008.<br /> <br /> <br /> MEMBER MEMBER PRESIDENT<br />