The main legal point established in the judgment is that a loss resulting from fraud played upon the complainant is covered under the Money Insurance Policy, entitling the complainant to indemnification.

ORDER :

Mr. Anil Srivastava, Member-This Complaint was filed by M/s. Indo American Com. Ltd. based at New Delhi, for short complainant, under Section 17 of the Consumer Protection Act, 1986 (the Act) against the New India Assurance Company Ltd. and others, hereinafter referred to as the OPs, alleging ‘deficiency in service’ and ‘unfair trade practices’ on the part of the OPs causing immense financial loss and mental injury to the complainant by repudiating their legitimate claim otherwise stated to be admissible, and praying for the relief as under:

(i) The Hon’ble State Commission may be pleased to direct the Insurance Company to pay the loss suffered by the complainant to the tune of Rs. 27,17,590 (claim amount).

(ii) Award interest @18% p.a. on the said amount from the date of the loss till the date of actual payment;

(iii) Award compensation for mental agony and harassment of the directors of the complainant company to the tune of Rs. 5,00,000;

(iv) Award costs of Rs. 1,00,000 for litigation expenses;

(v) Any other relief which the Hon’ble Commission may deem fit and proper in the facts and circumstances of the case;

(vi) The complainant company is a very small identity and their entire capital is involved in this case, which has made to carry on the business activities of the complainant difficult due to paucity of funds and as such an interim relief of minimum Rs. 15 lakh may kindly be considered.”

2. Facts of the case necessary for the adjudication of the complaint are these.

3. This complaint preferred in the year 2005 was once disposed of by this Commission vide order dated 22.1.2009, which orders were later assailed before the Hon’ble National Consumer Disputes Redressal Commission by way of an appeal. The said appeal was disposed of by the Hon’ble National Consumer Disputes Redressal Commission by its order dated 4.7.2016, allowing the appeal and setting aside the orders passed by this Commission, remanding the complaint back to the Commission to decide afresh after considering the objection on the ground of limitation raised by the OPs. Accordingly both the parties were noticed and heard again.

4. The complainant company is carrying on its business of Full Fledged Money Changer (FFMC) under License No. FFMC.EC.DEL/41/95 granted by the Reserve Bank of India. The complainant desirous of getting its day-to-day risks relating to transaction of money changing covered, contacted the Insurance Company in response to which the OPs had offered a policy with comprehensive premium rates and salient features of the policies through which they intended to cover the risks were reportedly according to the complainants needs. The complainant vide its letter dated 5th December, 2001 however requested for inclusion of two more features in the policy particularly coverage of risk of forged and dishonoured cheques/pay order/drafts/credit cards and the other banking instruments as it was a specific and categorical requirement of the complainant company to get such risks covered in the policy. Accordingly the complainant filled a proposal form issued by the O.P. Company and insured itself for the period 9.12.2001 to 8.12.2002 covering a total risk of Rs. 6.00 crores besides covering a single transaction up to the limit of Rs. 30.00 lakh. Clause-8 of Schedule to the said insurance policy covered the risks in respect of fraud, forgery with respect to buying selling of foreign currency in exchange of cheques and other banking instruments upto Rs. 30.00 lakh. The said Clause 8 is reproduced as under:

“Clause 8: Policy is also extended to cover the risk of Fraud/Forgery with respect to Travellers Cheque/Foreign Currency notes, purchased Bank pay order/drafts and any other banking instruments and Indian Currency notes received against sales of Foreign currency(ies) in form of Cash/Travellers cheques upto Rs. 30 lakh (Rupees thirty lakh) each transit/transaction).”

5. One M/s. Vision Computers projected themselves as a very well reputed and financially