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SUBHASH CHANDRA
Centex Fabrics - Export Uni – Appellant
Versus
National Insurance Company Limited – Respondent
ORDER
Subhash Chandra, Member—This complaint under section 21 of the Consumer Protection Act, 1986 (in short, ‘the Act’) is filed against the opposite parties for against disallowance of the amount claimed under the Fire and Special Perils Policy obtained by it alleging deficiency in service by the opposite party.
2. The facts of the case as per the complainant in brief are that complainant no. 2 is engaged in the business of manufacture and export of shawls, scarfs, mufflers, stoles, upholstery etc. The complainant’s factory was covered by a Standard Fire and Special Policy (Floater Policy) dated 01.04.2011 for the period 01.04.2011 to 31.03.2012 for a sum of Rs.13,50,00,000/-. On account of torrential rain on the night of 12/13.08.2011 the factory was inundated by rain and flood water. On being informed the opposite parties appointed M/s N Kumar, Surveyors Pvt. Ltd. as Loss Assessors who, after inspecting the premises, submitted a report on 18.08.2011 estimating a loss of Rs.3.15 crores based on physical verification and stock statement, considering the extent of damage against the insured’s tentative estimate of loss of Rs.4,61,43,000/- net of salvage. Thereafter, M/s Sanjay Dwi
The insurance company’s coercive practices in settling claims amount to deficiency in service under consumer law.
A claimant must establish evidence of coercion in accepting insurance settlement to prevail in a deficiency of service claim under the Consumer Protection Act.
(1) Survey Report - The Survey Report is an important document and cannot be ignored while settling claims.(2) Coercive practice - Complainant has not issued the Discharge Voucher of his own free wil....
(1) Unfair Trade Practice – Successive Reductions indicates trend of unfair treatment that does deserve to be encouraged.(2) Insurance company is also regulated by IRDA regulations & reasonable perio....
The acceptance of an insurance settlement under protest does not forfeit the right to pursue further claims, affirming the consumer's right amid shortcomings in service.
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