IMPORTANT POINT
OP required to dispose of claim petition within six months, taken time to send repudiation letter,consequently imposed Rs.50000 for delaying matter.

J.M. Malik, Presiding Member—Shri Ganesh Metal Industries, the complainant, is a partnership firm with Shri Geharilal D. Sanghvi (HUF), Shri Dinesh G. Sanghvi, Shri Manoj G. Sanghvi and Mrs. Basantiben G. Sanghvi, as partners. The complainant firm transacts the business of manufacturing of aluminium ingots, shots, alloys, extrusions, powder, dross etc. The factory is situated at Thane. The complainant/firm obtained two fire policies from Oriental Insurance Company Ltd./OP. for a sum of Rs.40 lakh and Rs.35 lakh, respectively. Copies of policies have been placed on record as annexure A & B. Both these policies also cover special Perils. The complainant/firm has another sister concern viz. Sanghvi & Sons, which also stores its material/stock in the godown belonging to the complainant firm. The sister concern has separate insurance policies covering their own stocks, from the OP.

2. Unfortunately, the insured’s properties of the both the above said concerns were heavily damaged due to storm and rainwater on 23rd and 24th August, 1997, during the subsistence of the insurance policies. The OP was immediately informed vide annexure Ext. C. Subsequently, the formal claim in the prescribed form estimating the losses at Rs.23,40,860.77 was also filed vide Ex.D. The sister concern also lodged the separate claim with the OP. The OP appointed M/s C. P. Mehta & Co., as Surveyor to assess the losses/damages suffered by the complainant firm. Several queries were raised by the Surveyor, which was replied by the complainant vide Ex. ‘E’.

3. However, the OP repudiated the claim on the ground that Surveyor is of the opinion that the losses suffered were not due to storm and that the loss was possible due to some rain water damage. The OP also alleged on the basis of the Surveyor’s report that the claim was grossly and fraudulently exaggerated and vide condition No. 8, the OP was not entitled to any amount. The letter of repudiation was annexed with the complaint as Ex. ‘F’. The claim of the sister concern was also repudiated on the same ground.

4. It is alleged that the OP failed to furnish the copy of the Surveyor’s report. The complainant protested the repudiation of the claim. They challenged that the Surveyor did not give the valid reasons for repudiating the genuine and reasonable claim of the complainant firm. It is explained that a storm followed by heavy rains occurred on 23rd and 24th August 1997 in “Dahanu” and other places in Maharashtra. The complainant has produced newspaper clippings from the Times of India and Indian Express and also a certificate from the Sarpanch of Ganjad Gram Panchayat dated 23.8.1997. Gram Panchayat certified that at about 11.30 p.m. there was stormy wind, the cement/ aluminium corrugated sheets on the roof of the Godown were found blown off, due to continuous heavy rains aluminium foils and aluminium dross were damaged due to the said stormy winds and rain-water. Five adivasis natives staying near the said Godown have given their written declarations that they have witnessed abnormal cyclonic winds and storm over their area. The Deputy Director General of Meteorology, Mumbai has furnished Weather Report for 23rd and 24th August, 1997 confirming all the above said facts. It was stated that the cyclone was so strong over North Maharashtra port and local cautionary signal No.III hoisted at all ports from Dahanu to Jaigaid for squally weather (sudden violent stormy wind). There was rough sea. A warning was issued to Maharashtra Coast with advice not to venture into sea. All this evidence was ignored. In the report of Regional Meteorology Centre, the storm has been defined as:

“The Term Storm is commonly used for any violent atmospheric phenomenon such as gale, thunder storm, line squall, rain storm, dust storm and snow storm. In synoptic meteorology the term is applied to active center of low pressure wit