The terms of the insurance policy are to be strictly construed as they are and cannot be interpreted differently. Public sector insurance companies must adhere to the final orders of the highest authority.

ORDER :

Prem Narain, Presiding Member

First Appeal No. 601 of 2012 and First Appeal No. 629 of 2012 have been filed by the appellant, State Bank of Bikaner and Jaipur (now State Bank of India) and National Insurance Company Ltd. respectively against the order dated 27.8.2012 passed by the State Consumer Disputes Redressal Commission, Rajasthan (for short, ‘State Commission’) in CC No. 20 of 2008.

2. Brief facts of the case are that the respondent No. 1/complainant has taken the cash credit facility from the State Bank of Bikaner and Jaipur/OP-3. The stocks were insured under insurance policy given by the National Insurance Company Ltd./OP-1 and the policy was valid from 14.2.2004 to 13.2.2005 and the sum insured was Rs. 8,00,000. It is mentioned in the policy that property is situated at above address and this address is given as A-89, Sunder Nagar, Ajmer Road, Jaipur, Rajasthan – 302 006. This policy was renewed from 18.2.2005 to 17.2.2006 with sum assured as Rs. 8,00,000 only and risk location as A-89, Sunder Nagar, Ajmer Road, Jaipur. The policy was further renewed from 21.3.2006 to 20.3.2007. In this policy also it is mentioned that the property is situated at A-89, Sunder Nagar, Ajmer Road, Jaipur, Rajasthan-302 006. However, in this policy the sum insured has been increased to Rs. 25,00,000 and description of risk insured shown as “Wooden Furniture”. Another policy was taken from 27.12.2005 to 20.12.2006 for Rs. 20,00,000 basically to cover saw mills (including timber merchants premises where sawing is done).

3. During the night of 30.9.2006 and 1.10.2006 a fire broke out in the godown of respondent No. 1. The claim was submitted before the Insurance Company. However, the Insurance Company repudiated the claim on 4.2.2008 on the ground that the surveyor has intimated that the stocks were kept at Plot No. 215, Sunder Nagar, Ajmer Road, Jaipur and these stocks were not insured under the policy. The complainant then filed a consumer complaint bearing CC No. 20/2008 before the State Commission. The Insurance Company/OP-1 resisted the complaint by filing the written statement stating that the proposal for insurance was only in respect of property situated at Plot No. A-89, Sunder Nagar, Ajmer Road, Jaipur, whereas the fire broke out at Plot No. 215 and therefore, the stocks kept at Plot No. 215 were not covered under the insurance policy. Hence, the Insurance Company has rightly repudiated the claim. On this basis, the complaint was requested to be dismissed.

4. OP-3 Bank also filed written statement stating that the Bank obtained the insurance policy on the address given by the complainant in the loan application and therefore, there is no deficiency on the part of the bank too and it was requested to dismiss the complaint. The State Commission vide its order dated 27.8.2012 allowed the complaint as under:

“15. Therefore, for the aforesaid reasons, the complaint of the complainant firm is allowed. The complainant is entitled to get Rs. 36,89,345 (Rupees thirty six lacs eighty nine thousand three hundred and forty five only) from the non-petitioners jointly and severally. The complainant shall also be entitled to get 9% interest on the aforesaid amount from the date of filing of the complaint. The complainant is also entitled to get Rs. 30,000 (Rupees thirty thousand) as compensation for mental agony and cost of the proceedings. The non-petitioners are directed to make the payment of the aforesaid amount to the complainant within one month from the date of the order.”

5. Hence, the OP-1 Insurance Company as well as OP-3 bank have preferred these appeals before this Commission.

6. Heard the learned Counsel for the parties and perused the record.

7. Learned Counsel for the Insurance Company stated that the Insurance Company issued the insurance policy on the basis of proposal form. For the policy of Saw Mills, in the proposal form a