The main legal point established is the requirement to supply the Surveyor's report to the insured and the principles of natural justice in repudiating insurance claims.

ORDER

D. K. Jain, President

1. By these two First Appeals, under Section 19 of the Consumer Protection Act, 1986 (for short "the Act"), United India Insurance Co. Ltd. (for short "the Insurance Company")/ Opposite Party No. 1 in the Complaints under the Act, call in question the legality and correctness of the orders dated 27. 02. 2008 & 24. 01. 2008, passed by the U. P. State Consumer Disputes Redressal Commission at Lucknow (for short "the State Commission") in Complaint Cases No. 06/02 & 05/03 respectively. By the impugned orders, while partly allowing the Complaints, preferred by the Respondent/Complainant, alleging deficiency in service on the part of the Insurance Company in unjustifiably repudiating the claims, preferred by it, for the loss suffered on account of overturning of the tankers, containing Palmolein Oil, en-route to its destination, the State Commission has directed the Insurance Company to pay to the Complainant sums of Rs. 5,52,150/- and Rs. 5,89,221/-, along with interest @ 6% from the date of filing of the Complaints till actual realization, within two months from the date of receipt of certified copy of the said orders.

2. Though the State Commission has disposed of the Complaints by two separate orders, but, except for some variation in the dates & events and the amount of transactions involved, both the Complaints being between the same parties and involving more or less similar issues, we deem it expedient to dispose of these Appeals by this common order. Nonetheless, except to note that the Complainant is engaged in the manufacturing of vegetable Vanaspati ghee, in its manufacturing unit at Naupur, District Jaunpur, Uttar Pradesh, for which purpose it used to purchase Palmolein Oil from different parts of the country as well as abroad, we shall briefly refer to the factual matrix leading to the filing of the Complaints in each of the Appeals as under:-

First Appeal No. 272 of 2009

3. The Complainant had taken from the Insurance Company Marine Cargo Insurance Policy which was valid from 24. 04. 1997 to 23. 04. 1998. The policy covered risk against any loss or damage arising out of any road accident and/or theft, pilferage and non-delivery (TPND). Sometime in November, 1997, a consignment of the said oil was dispatched to the Complainant through M/s Fomra Bulk Carriers at Kolkata. On 24. 11. 1997 the Complainant received information that the tanker carrying the oil had overturned on the way and almost the entire quantity of the oil was lost due to leakage and drainage. Upon receipt of information, while intimating about the incident to the Insurance Company on 25. 11. 1997, the Complainant also lodged an FIR with the Police at Varanasi on 29. 11. 1997. Besides, an FIR about the incident was also lodged by the Carrier. Upon receiving the intimation, the Insurance Company appointed M/s D. Chand & Co. to assess the loss/damage suffered by the Complainant. After conducting local enquiries, including from the Police, the Surveyor submitted its Marine Survey report dated 02. 02. 1998 to the Insurance Company opining thus:

"During discussion with chauparan police we came to know only little quantity of oil was available in tanker at the time of handing over to Varanasi Police.

During inspection of spot of occurrence we observed that there was no any loss of single drop of oil due to accident. There was no any hole or damage was observed in tanker body at the spot.

From above facts and details available, we are in the opinion that tanker was brought to place of accident in almost empty condition and left for accident to such a place of prove transit loss.

In our opinion there is no any loss of oil due to this accident. We have already given a letter for the same on 09-12-97 to Gaya Division. "

4. On 17. 02. 1998, the Complainant preferred claim under the policy, praying for indemnification of loss to the tune of Rs. 5,52,150/-. Subsequently, the Insurance Company appointed yet another Surveyor, namely, Rakesh Aga