BEFORE THE DISTRICT FORUM: KURNOOL

Present: Sri. T.Sundara Ramaiah, B.Com B.L., President

And

Sri. M.Krishna Reddy, M.Sc., M.Phil., Male Member

And

Smt. S.Nazeerunnisa, B.A., B.L., Lady Member

Tuesday the 10^th day of May, 2011

C.C.No.89 /10

Between:

Akuthota Seshaiah, S/o Krishnaiah, Proprietor of Seshaiah and

Brothers Kirana Merchant,

New Bust Stand, Main Road, Kollapaur, Mahaboob Nagar District.  

                             …Complainant

                                          -Vs-

1. United India Insurance Company Limited, Represented by its Branch Manager,

   Gadwal.

1. United India Insurance Company Limited,Represented by its Divisional Manager,

        Mourya Inn complex, Kurnool.                              

    ...Opposite ParTies

This complaint is coming on this day for orders in the presence of Sri M.L.Srinivasa Reddy, Advocate for complainant and Sri I.Anantha Rama Sastry, Advocate for opposite parties 1 and 2upon perusing the material papers on record, the Forum made the following.

ORDER

(As per Sri. T.Sundara Ramaiah, President)

                                      C.C. No. 89/10

1.     This complaint is filed under section 12 of C. P. Act, 1986 praying:-    

(a)    To pay assured amount of Rs.1,96,700/- towards loss caused to the complainant and interest at 12% P.A. from the date of   fire incident i.e. 28-07-2002;

(b)    To award compensation of Rs.20,000/- for causing mental agony and inconvenience suffered by the complainant at the deficient conduct of the opposite parties;

                                        And

(c)    To cost of Rs.10,000/-;

                                        And

1. To pass such other reliefs as the Hon’ble Forum deem fit and proper in the circumstance of the case.

2.    The case of the complainant in brief is as under:- The complainant was having a General Store in  the name and style of A.Seshaiah and  brothers.  The goods in the said shop were insured with opposite party No.1 under the policy bearing No.051104/48/01/00048352.  The policy was in force from 18-10-2001 to 17-10-2002 covering the risk of the goods from fire and allied perils for Rs.2,76,000/-.  As on 28-07-2002 there was stock worth of Rs.1,96,700/- in the shop of the complainant.  On 28-07-2002 the shop of the complainant was burnt and there was total loss of the goods worth of Rs.2,00,000/-.  The police registered a case in Crime No.120/2002 of Kollapur Police Station on the basis of the report given by the complainant.  The complainant informed about the fire accident to opposite party No.1.  Opposite party No.2 has deputed its surveyor to assess the loss.The complainant                  submitted the claim form along with required documents to opposite party No.1 through the surveyor.   The complainant number of times requested opposite parties 1 and 2 to settle the claim.  Finally opposite party No.2 on 18-11-2008 sent a letter stating that the claim of the complainant was closed treating it as no claim.  The claim of the complainant was neither settled nor repudiated by the opposite parties till 18-11-2008.  Hence the complaint.

3.     Opposite party No.2 filed written version and the same is adopted by opposite party No.1.  It is stated in the written version of opposite party No.2 that the complaint is not maintainable.  The complaint is barred by limitation.  The shop of the complainant was insured with opposite parties under the policy bearing No.051104/46/01/00048352.  The policy was inforce from 18-10-2001 to 17-10-2002.  Opposite party No.1 came to know that there was a fire accident in the shop of the complainant on 28-07-2002 and he sustained loss. After receiving intimation opposite party No.2 deputed surveyor to inspect the shop and assess the loss.  The surveyor inspected the shop on 28-07-2002 and informed the complainant to produce relevant documents to prove stock in trade on the date of the fire accident.  Opposite party No.1 also addressedletter to the complainant and also to the financier to produce the relevant documents required by surveyor.   The complainant failed to submit required documents to enable the surveyor to assess the loss.  The complainant suppressed material information.  The period of limitation is two years for filing the complaint, from the date of the cause of action.  The complaint is not filed within the time.  There is no deficiency of service on the part of opposite parties 1 & 2.  The complaint is liable to be dismissed.

4.     On behalf of the complainant Ex.A1 to A21 are marked and sworn affidavit of the complainant is filed.  On behalf of the opposite parties 1 and 2 Ex.B1 is marked and sworn affidavit of the opposite party No.2 is filed. 

5.     Both sides filed written arguments.

6.     The points that arise for consideration are:

1. Whether the complaint is barred by time?

1. Whether there is deficiency of service on the part of Opposite Parties?

1. Whether the complainant is entitled to the reliefs as prayed for?

(c)                To what relief?

7.      POINT No.1 :  Admittedlythe complainant was having a Kirana Shop and stock in trade was insured with opposite party No.1 under Ex.B1 Insurance Policy.  The said policy covers risk of the goods in the shop of the complainant from fire and allied perils for Rs.2,76,000/-.  Admittedly there was a fire accident in the shop of the complainant on 28-07-2002 and the stock in trade was completely damaged.  Ex.A5 is the certificate issued by Station Fire Officer, Fire Station Kollapur where in it is mentioned that fire accident occurred in the shop of the complainant on 28-07-2002.  Admittedly after the fire accident the complainant informed the opposite parties about the damage and a surveyor was appointed.  The complainant also made a claim to the opposite parties.  The opposite parties did not repudiate the claim of the complainant.  For the notice got issued by the complainant opposite party No.2 sent a letter dated 18-10-2008 stating that the claim of the complainant    was closed treating it as no claim.  There after the complainant filed the present complaint on 20-04-2010. It is the case of the opposite parties that the complaint is not filed within two years from the date of the accident on 28-07-2002 and that the present complaint filed on 20-04-2010 is barred by time.  Under Section 24 (a) of Consumers Protection Act 1986 the period of limitation to file a complaint before the District Forum is two years from the date on which the cause of action as arisen.  It is submit      by the learned counsel appearing for the complainant that the period of limitation forfilling the complaint in case of insurance claim starts from the date of repudiation of the claim by the Insurance Company but not from the date on which the accident took place.  Admittedly in the present case it is not the case of the opposite parties that the claim of the complainant was repudiated.  In Ex.A14 letter dated               18-11-2008 the complainant was informed by the opposite parties that he did not submit the required documents and hence the claim was considered as no claim. In a decision reported in2006 (2) CPR 85 (NC) it was held “a mere letter of reminder by the petitioner stating that claim would be considered to be ‘No claim’ cannot be acceptable as final repudiation.  Insurance Company ought to have sent a letter repudiating the claim for not supplying the documents asked for”.  In the present on hand also the claim of the complainant was not repudiated on the ground that he failed to submit the required documents.  On the other hand Ex.A14 letter dated18-11-2008 was sent to the complainant stating that his claim was closed as no claim.  The complainant filed the present complaint within two years from the date of no claim letter dated 18-11-2008.  Admittedly the complainant made a claim to the opposite parties and it was not repudiated.   It cannot be said that the complaint is barred by time as there is no repudiation of the claim of the complainant by the opposite parties till the date of complaint.  The complaint is well in time and it is not barred by period of limitation. 

8.      POINT No. 2 & 3:-       The complainant filed the present complaint praying to direct the opposite parties to pay an amount of Rs.1,96,700/- towards the loss sustained by him in the fire accident.Admittedly the stock in trade in the shop of the complainant was damaged in the fire accident that took place on 28-07-2002.  The opposite parties deputed a surveyor by name E.Mukund to assess the loss.No record is produced by the complainant to show that the surveyor assessed the loss at Rs.1,96,700/-.  The complainant filed Ex.A2 letter addressed to him by the surveyor E.Mukund.  In the said letter the complainant was asked to produce the documents like day book ledger ect.  There is no mention in Ex.A2 that the surveyor assessed the loss sustained by the complainant.  The complainant did not place documentary evidence to show that hesubmitted day book ledger etc., before the surveyor.   According to the opposite parties the surveyor could not assess the loss as the complainant failed to submit the required information.  Admittedly the shop of the complainant was burnt and in the said accident the account books of the complainant must have been burnt.  Simply because the complainant failed to submit the records, the claim of the complainant cannot be negatived.  Admittedly the complainant immediately after the accident gave report to police.  Ex.A20 is the copy of the F.I.R. in Crime No.120/2002.  In Ex.A20 it is mentioned that the loss sustained by the complainant due to the fire accident is about Rs.1,80,000/-.  Admittedly the State Bank of India, Kollapur financed the shop of the complainant.  The said Bank addressed Ex.A9 and A11 letters dated 07-01-2004 and 20-12-2004 to the opposite parties stating that the value of the property lost by the complainant is about Rs.1,96,700/-.   Merely basing on Edx.A9 and A11 it cannot be said that the             stock in trade was Rs.1,96,700/- by the date of the fire accident in the shop of the complainant.  The complainant at an earliest point of time gave a report to police where in it is mentioned that the stock in trade damaged in the fire accident was Rs.1,80,000/-.   Therefore we think it is just and proper to direct the opposite parties to pay an amount of Rs.1,80,000/- towards the loss caused to the complainant in the fire accident on 28-07-2002. 

9.     In result, the complaint is partly allowed directing the opposite partiesjointly and severally to pay an amount of Rs.1,80,000/- to the complainant, with interest at 9% from the date of the complaint i.e. 20-04-2010 till the date of payment along with cost of Rs.1,000/-.  

Dictated to the stenographer, transcribed by her, corrected and pronounced by us in the open bench on this the 10^thday of May, 2011.

Sd/-                              Sd/-                              Sd/-

MALE MEMBER                      PRESIDENT                 LADY MEMBER

APPENDIX OF EVIDENCE

Witnesses Examined

For the complainant : Nil            For the opposite parties:Nill

List of exhibits marked for the complainant:-

Ex.A1                Photo copy of policy NO.051104/48/01/00048352.

Ex.A2.       Letter dated 28-07-2002 received by the complainant from the surveyor E.Mukund.

Ex.A3        Office copy of letter dated 02-08-2002 sent by the

                complainant to the S.B.I. A.D.B. Kollapur.

Ex.A4                Photo copy of Statement of A.Seshaiah and Brothers,

                Kollapur, Mahaboobnagar District.

Ex.A5                Photo copy of Certificate issued by Station Fire Officer,

Kollapur, dated 01-08-2002.

Ex.A6                Acknowledgement cum demand notice dated 12-06-2002

issued by the Deputy Commercial Tax Officer, Wanaparthy to the complainant.

Ex.A7                Letter dated 20-12-2003 of complainant to the

opposite party No.1.

Ex.A8        Letter dated 15-01-2003 of complainant to the

opposite party No.1.

Ex.A9                Photo copy of letter dated 07-01-2004 issued by the

                S.B.I.,Kollapur Branch, Mahaboobnagar District

Ex.A10       Letter dated 26-03-2004 of complainant to the

Opposite party No.1.

Ex.A11       Photo copy of letter dated 20-12-2004 issued by the

                S.B.I.,Kollapur Branch, Mahaboobnagar District.

Ex.A12       Letter dated 02-10-2008 of complainant to

Opposite party No.2.

Ex.A13       Photo copy of letter dated10-11-2008 of complainant to

Opposite party No.2.

Ex.A14       Letter dated 18-11-2008 of opposite party No.2 to

complainant.

Ex.A15       Photo copy of letter dated28-11-2008 of complainant to

Opposite party No.2.

Ex.A16       Photo copy of letter dated 06-01-2009 of complainant to

Opposite party No.2.

Ex.A17       Photo copy of letter dated 21-01-2009 issued byR.Srinivasan, Managing Director, M/s United India Insurance Company Limited, Chennai.

Ex.A18       Photo copy of fire insurance claim form

No.051104/48/01/48352.

Ex.A19       Photo copy of Statement of A.Seshaiah and Brothers,

                Kollapur, Mahaboobnagar District.

Ex.A20       Photo copy of FIR No.120/2002 dated 28-07-2002,

                Kollapur,Police Station.

Ex.A21       Photo copy of Inquest report dated 28-07-2002.

List of exhibits marked for the opposite parties:-

Ex.B1                Insurance policy No.051104/48/01/34/00048352.

        Sd/-                                   Sd/-                                  Sd/-

MALE MEMBER                      PRESIDENT                 LADY MEMBER

// Certified free copy communicated under Rule 4 (10) of the

A.P.S.C.D.R.C. Rules, 1987//

Copy to:-

Complainant and Opposite parties  :

Copy was made ready on             :

Copy was dispatched on               :