MAIN POINTS
Claim made by insured itself is actionable and he is not required to approach a court not required to approach a court.
Provision of limitation in the beneficent legislation cannot be strictly construed to disadvantage a consumer.

JUDGMENT :

Madan B. Lokur, J.

1. The question arising in the first appeal directed against the judgment and order dated 23rd April, 2007 passed by the National Consumer Disputes Redressal Commission (for short ‘the National Commission’) in Original Petition No. 161 of 1996 is whether the claim of the respondent for goods insured, was rightly accepted (though in part) by the National Commission . Our answer to this question is in the affirmative and we find no reason to interfere with the decision of the National Commission.

2. The respondent Hindustan Safety Glass Works Ltd. (for short ‘the insured’) had taken out two policies with the appellant National Insurance Company, both dated 29th August, 1990 for a period of one year which were subsequently renewed for another year. The first policy was for an amount of Rs. 4.9 lakhs to cover the risks on office building, residential quarters and canteen etc. in Calcutta. The second policy was for an amount of about Rs. 5.7 crores to cover the risks on building, machinery, finished and semi finished stocks, store, furniture, wiring and fittings etc. in its factory/works in Calcutta. The policies included damage or loss due to flood and inundation.

3. There is no dispute that on 6th August, 1992 there was heavy incessant rain in Calcutta resulting in heavy accumulation of rain water inside and around the factory/works of the insured. According to the insured, there was considerable damage to raw materials, stocks and goods, furniture etc. As a result of the damage suffered by the insured and in terms of the two policies taken out with National Insurance, claims were filed by the insured on 7th and 8th August, 1992 claiming a total amount of about Rs. 52 lakhs.

4. Pursuant to the claims having been made, National Insurance appointed N.T. Kothari & Co. as its surveyor on 24th September, 1992. The requisite survey was carried out and N.T. Kothari & Co. submitted its report on 11th November, 1993 indicating a loss of about Rs. 24 lakhs having been suffered by the insured.

5. For reasons that are not very clear, National Insurance did not accept the report and instead appointed Seascan Services (WB) Pvt. Ltd. as a surveyor to report on the loss or damage suffered by the insured. The second surveyor gave its report on 23rd November, 1994 assessing the loss or damage suffered by the insured at about Rs. 26 lakhs. By an addendum issued on 10th February, 1995 the damage or loss incurred by the insured was reduced to about Rs. 24 lakhs.

6. In spite of two survey reports quantifying the loss or damage suffered at about Rs. 24 lakhs, nothing was paid to the insured by National Insurance. Consequently, on 22nd April, 1996 the insured sent in notice to National Insurance to the effect that its claim had not been settled and that the loss or damage claimed was to the extent of about Rs. 52 lakhs and that this should be paid.

7. National Insurance did not reply to this notice and consequently, the insured filed a complaint with the National Commission under the provisions of the Consumer Protection Act, 1986 (for short ‘the Act’) claiming an amount of Rs. 52.32 lakhs along with an amount of about Rs.1.81 lakhs being the expenses incurred for the purpose of loss minimisation. Interest at 18% per annum was also claimed by the insured with effect from 6th December, 1992 that is four months after the occurrence of the flood or inundation.

8. At this stage, it may be noted that the claims made by the insured in terms of its letters dated 7th and 8th August, 1992 as well as the notice dated 22nd April, 1996 were repudiated by National Insurance much later on 22nd May, 2001 which is about five years after the complaint was filed with the National Commission.

9. Be that as it may, in response to the complaint and during the course of submissions, National Insurance raised four objections. These have been summarised by the National Commission as follows:-

(i) Complaint was barred by condition No. 6(ii) of the policies;

(i