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NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
C. Viswanath, Presiding Member
National Insurance Company Ltd. —Petitioner
versus
Shree Tirupati Hosiery (P) Ltd. —Respondent
Revision Petition No.3059 of 2016
(Against the Order dated 25/07/2016 in Appeal No. 487/2014 of the State Commission West Bengal)
Decided on 16.3.2020
Counsel for the Parties:
For the Petitioner:Mr. Gopal Basu, Advocate
For the Respondent: NEMO
IMPORTANT POINT
Repudiation of fire insurance claim on plea that cause of loss was not covered under policy held not justified.
Headnote:
Consumer Protection Act, 1986 – Section 21(b) – Consumer Protection Act, 2019 – Section 58 – Fire insurance – Policy claim – Scope – Accidental fire took place on 11.7.2012 within factory premises – Surveyor assessed the loss at Rs. 1,36,389/- – Insurance company repudiated the claim on plea that cause of loss was not covered under the policy – Challenge against – Fire originated in the switch board and spread to panel board of the machine – Surveyor did not identify any cause of fire, though he opined that the accident might have happened due to the short circuit – Subsequently, Surveyor wrote a letter to Insurance Company that the claim would fall under exclusion clause – Both the Fora below have only differed in terms of the compensation to be paid – And order of District Forum of payment of Rs. 75,000/- was modified by State Commission to Rs. 1,36,389/- – No illegality found in the impugned order (Paras 7 to 10)
Result: Appal dismissed.
ORDER
C. Viswanath, Presiding Member—The present Revision Petition, under Section 21 (b) of the Consumer Protection Act, 1986 (for short “the Act”) has been filed by the Petitioner against the order of the West Bengal State Consumer Disputes Redressal Commission, Kolkata (for short “the State Commission”) in First Appeal No.487/2014 dated 25.07.2016.
2. Briefly put, facts of the case are that the Respondent/Complainant took Standard Fire and Special Perils Policy for its factory valid from 26.06.2012 to 26.06.2013 for a sum assured of Rs.60 lakhs. A fire accident took place while a workman was working on the machine at about 1.00 am on 11.07.2012. Fire broke out from panel board of a machine. As the fire was extinguished within a very short time, neither police nor the fire authorities were informed about the occurrence of the fire. Insurance Company was intimated of the loss on 11.07.2012 itself, whereby they appointed surveyor Sri Saradindu Patranabis, who submitted the report on 21.09.2012 assessing the net amount payable at Rs.1,36,389/-. The Insurance Company repudiated the claim of the Complainant vide letter dated 13.12.2012 stating that the cause of loss was not covered under the policy, it was excluded under the general exclusion clause No.7 of the policy. Having received no further response from the Petitioner Company, complaint case was filed before the District Forum with the following prayer: -
“It is, therefore, humbly prayed that your honour would graciously be pleased to order upon the opposite parties to make payment of the amount of claim of Rs.1,36,389/- with costs and expenses incurred plus interest @ 12% p.a. from the d ate of claim lodged upon the insurer plus compensation totalling to Rs.1,97,389/- and also the additional costs as deem fit and proper by Hon’ble Forum and also other relief or reliefs the Hon’ble Forum may further deem fit and proper.”
3. The Petitioner/Opposite Party contested the Complaint that police and fire authorities were not informed about the occurrence of the fire and having taken the survey report into account, the surveyor having confirmed the non-admissibility of the claim, the claim had been repudiated as per exclusion clause No.7 of the policy.
4. The District Forum after hearing both the parties and perusing the records ordered as follows: -
“OPs are hereby directed to release and pay a sum of Rs.75,000/- as final compensation in respect of the claim as made by the complainant to the OP considering the entire claim application or claim matter as settled finally and no other claim shall be made by the complainant in respect of this claim in future.
But it must be paid within one month from the date of this order failing which penal interest @ Rs.100/- shall be assessed till full satisfaction and implementation of the decree of this Forum and it must be complied by the OP within one month from the date of this order otherwise all sorts of penal proceedings shall be started against the OP for implementation of the order for which OP shall be responsible.”
5. Being aggrieved and dissatisfied with the order of the District Forum, the Petitioner/Opposite Party filed an appeal before the State Commission. The State Commission after hearing both the parties, after giving detailed justification, ordered as follows: -
“That the appeal be and the same is dismissed on contest. The impugned order be modified to the effect that a sum of Rs.1,36,389/- shall be released by the Appellant Insurance Company to the Respondent/Complainant with interest @ 9% p.a. with effect from date of submission of the claim. The entire amount shall be paid within a period of 40 days from the date of this order, failing which further interest @ 10% p.a. on the decretal amount shall accrue till full realization. Ld. Forum’s direction regarding payment of penal interest @ Rs.100/- stands deleted. The complaint stands allowed.”
6. Aggrieved by the order of the State Commission, present Appeal has been filed.
7. Hea
