Haryana

Bhiwani

CC/170/2018

M/S Uma Shankar - Complainant(s)

Versus

Univarsal Ins. - Opp.Party(s)

Pardeep Vashist

19 Dec 2023

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, BHIWANI

 

                                           Complaint Case No.:170 of 2018

     Date of Institution  : 14.12.2018

                                           Date of Decision    : 19.12.2023

 

M/s Uma Shankar Traders through Sh. Jaibir Singh, Proprietor Circular Road Haluwas Gate, Bhiwani, Tehsil and District Bhiwani.

 

                                                     ….Complainant

Versus

1. Universal Sompo General Insurance Co. Ltd. Registered office Unit No.401, 4^th Floor, Sangam Complex, 127, Andheri, Kurla road Andheri, East Mumbai-400059.

 

Opposite Party

 

2. Allahabad Bank, Branch Office Bhiwani, Financer, Meham Gate, Near Chug Hospital, Circular Road, Bhiwani.

 

                                  ...Performa OP

 

               COMPLAINT UNDER SECTION 12 OF THE

CONSUMER PROTECTION ACT, 1986.

 

Before: -   Smt.Saroj Bala Bohra, Presiding Member.

Ms. Shashi Kiran Panwar, Member.

 

Present:    Sh. Pardeep Vashisth, Advocate for complainant.

               OPs exparte.

 

ORDER

Ms. Shashi Kiran Panwar, Member.

          1       Brief facts of this case are that complainant do the work of selling paints in his aforesaid shop which was insured with OP No.1 through OP No.2 vide policy No.2939/52939003/03/000 w.e.f. 14.02.2016 to 13.02.2017 for an amount of Rs.39.00 lacs including Rs.19.50 lac of Fire and allied perils building and/or contents.  It has submitted that fire broke out in the sop. Police as well as OP No.1 were intimated regarding fire and thereby loss.  OP company deputed surveyor, who reported the loss and stock for Rs.19,50,000/- though, as per complainant, loss was around Rs.22/23,00,000/- as all other items like computer, table, chair, fan, electric fitting, almirah, wall pain also destroyed in the fire and admissible in the claim.  Complainant has submitted that OP No.1 delayed the claim amount and bank was penalizing the complainant on account of non-payment of loan/cash credit installments of Rs.22.00 lac obtained by the firm against hypothecation of stocks and book debts.  The bank did not reduce the stock from the account books of the bank though fire was in their knowledge and  OP No.1 was not providing the details of stock which lost in fire and thus bank has added more than Rs.3.00 lac as interest.  In order to avoid further delay, complainant agreed to take Rs.19.50 lac but OP No.1 offered him Rs.13,42,973/- as claim though it was not sufficient. However, the OP No.1 company paid him only Rs.7,94,973/- on 20.12.2016 in his loan account without any explanation, which as per complainant is insufficient and arbitrary. Hence, the present complaint has been preferred by complainant alleging deficiency in service as well as unfair trade practice on the part of OP, seeking directions to Ops to pay Rs.11,55,027/- alongwith interest 18% per annum from the date of loss till payment and further to pay Rs.25,000/- on account of harassment. Any other relief, to which this Commission deems fit has also been sought.

               It has submitted that earlier complaint on this cause of action filed by complainant before Public Utility Court, Bhiwani was withdrawn on 08.02.2018.

2.            None put in appearance on behalf of OP No.2 despite issuance of registered notice and it was proceeded against as exparte vide order dated 25.02.2019.

3.            OP No.1 appeared through counsel but did not file written statement despite availing sufficient opportunities. Later on, neither any evidence tendered on behalf of OP No.1 nor it put in appearance. Hence, vide order dated 03.12.2020, OP No.1 was also proceeded against exparte.

4. In evidence of complainant documents Annexure C-1 to Annexure C-11 were tendered and closed the evidence on 24.01.2020. Further, in additional evidence document Annexure –X was tendered and closed the evidence on 14.12.2023.

5. We have heard learned counsel for complainant and have gone through the case file minutely. Written arguments on behalf of complainant filed.

6.                 As per insurance policy (Annexure C-8), the sum insured under the  policy for Fire  & Allied Perils Building and/or Contents was Rs.19,50,000/-. The policy was for a period from 14.02.2016 to 13.02.2017.  As per DDR No.11 dated 05.03.2016 (Annexure C-1), the fire in the shop of complainant was due to short circuit (electricity fault) and thus loss caused to complainant was within policy period.  Perusal of letter (Annexure C-3) reveals that complainant had informed the OP insurance company about the fire and the loss and that fire occurred in the shop on 04.03.2016. As per consent letter (Annexure C-7), the complainant was agreed to take Rs.13,42,671/- from OP insurance company but the OP insurance company only paid Rs.7,96,833/- which admittedly received by the complainant which after deduction RIP comes to Rs.7,94,973/- as net payable.  

7.                 Learned counsel for complainant has drawn our attention towards a document-Claim Note for Consideration and Approval of Committee of Directors (Annexure C-X). As per this document, insured submitted claim of Rs.17,50,263/-. Further perusal of this document reveals that gross loss assessed, as per surveyor, was Rs.17,50,263/- to the complainant but after various deductions, the OP insurance company has only paid Rs.7,94,973/- to the complainant. With the Annexure C-X, there is attachment of some e-mails wherein it is mentioned that ‘As per the joint physical inventory of the stock carried out by the surveyor and the lists of stock submitted, the damaged stock on the date of loss was Rs.17,50,263.42p and the sound stock lying at the godown (uaffected locatioin) is Rs.17,08,439.32p.

8.                 After having heard learned counsel for complainant and perusing the record on the file, we have come to conclusion that the OP No.1 insurance company has wrongly and illegally not paid the complainant claim amount as per the surveyor’s report/Annexure C-X, to the tune of Rs.17,50,263.42p. rather paid it as partly. This act & conduct of OP No.1 definitely caused monetary loss as well as mental and physical harassment to the complainant.  As such, the OP No.1 is deficient, negligent in providing proper services to the complainant as well as adopted unfair trade practice. Accordingly, the complainant is entitled to the amount of Rs.9,55,290/- (Rs.17,50,263/- minus Rs.7,94,973/-) and OP No.1 insurance company is directed to comply with the following directions with 40 days from the date of passing of this order:-

 

(i)       To pay a sum of Rs.9,55,290/- (Rs. Nine Lac fifty five thousand two hundred ninty) to the complainant alongwith simple interest @ 9% per annum from the date of institution of complaint till its realization.

 

(ii)      To pay a sum of Rs.20,000/- (Rs. Twenty thousand) on account of harassment  caused to the complainant at the hands of Ops.

(iii)     Also to pay a sum of Rs.55,00/- (Rs. Five thousand five hundred) on account of litigation expenses.

                    Further the award in question/directions issued above must be complied with by the OP No.1 within the stipulated period failing which all the awarded amounts  shall further attract simple interest @ 12% per annum for the period of default.  Copies of this order be sent to the parties concerned, free of costs, as per rules.  File be consigned to the record room after due compliance. 

Announced.

Dated:19.12.2023.