IMPORTANT POINT
Insurance Policy – Intimation of change of location of insured premises – In order to secure risk coverage, it is an obligation on insured to intimate the same to Insurance Company.

ORDER

A.P. Sahi, President.—The Insurance Company has come up assailing the order passed by the Gujarat State Consumer Disputes Redressal Commission, Ahmedabad dated 23.01.2015 in appeal No.59 of 2009, whereby the award made by the District Consumer Disputes Redressal Commission, Surat dated 24.10.2008 has been upheld. The fora below have accepted the claim of the complainant in respect of an indemnity under a Fire Perils Insurance policy and have directed a payment of Rs.3,20,000/- with simple interest @ 9% together with Rs.10,000/- for mental harassment and other expenses as well.

2. The complaint arose out of an incident of fire dated 24.01.2003 that is stated to have been covered under a policy issued by the Insurance Company that was valid for the period 27.02.2002 to 26.02.2003. The policy covered machinery, stocks and stocks in process. The insured was a chemical manufacturing unit of pharmaceutical and toiletry products that had acquired the insurance policy for the coverage of Rs.6,50,000/- for machinery and stocks/ stocks in process coupled with earthquake (fire and shock) for insured sum of Rs.2,25,000/-. The insurance policy for the period in question is appended as annexure P-1 and it recites the address of the firm as Ayursun Pharma, 29, Dharmesh Shopping Centre, Kamrej Char Rasta, Kamrej, Dist. Surat, 395003. The policy lower down describes the location as follows:

“The property is situated at:- 29, Dharmesh Shopping Centre, Kamrej Char Rasta, Kamrej, Dist., Surat.- 395003.”

The aforesaid recital is clearly endorsed on the policy.

3. The fire was reported to the Insurance Company and a surveyor, M/s. C. L. Dhamija and Co. was duly appointed who carried out a survey and submitted a report dated 31.03.2004, which is extracted herein under

“Ref. No.: UIIC/FR/03-04/240

Date: 31.03.2004

WITHOUT PREJUDICE,

To,

The Senior Divisional Manager,

The United India Insurance Co. Ltd.,

Divisional Office-I,

Surat.

Sub: Loss Caused to Stock & Machinery due to Fire On 24.01.03.

Insured: M/s. Ayursun Pharma

Policy No.: 1. 180800/11/02/00513.

2. 180800/11/02/05713.

Date of loss: 24.01.03

Dear Sir,

With reference to the above, please note that on receipt of instructions on 25.01.03 from United India Insurance Co. Ltd., D.O.I, Surat we preceded on same day & onwards to the place of fire to survey & inspect the loss caused to the Stock & Machinery reported due to fire on 24.01.03.

During our visit, we had informed the insured to submit the required details/ documents of the claim. We had also written various letters dated 06.02.03, 01.03.03, 19.03.03, 11.06.03, 08.09.03 & 08.11.03, requesting the insured to submit the required details/documents.

The address of insured’s mentioned in the policy is as under:

Ayursun Pharma

29, Dharam Shopping Centre,

Near Dharam Cenema,

Kamrej Char Road, Surat.

The address of insured’s Office is as under:

404-C, President Plaza,

Near R.T.O., Ring Road, Surat.

The address of place of fire is as under:

133, Amrut Nagar,

N.H.No.8, Kadodara

Ta. Palsana, Dist. Surat

The Insured has submitted the majority of the papers regarding their claim. But the endorsement in the policy regarding the change of address has not been submitted till date. Regarding the submission the same we have asked number of times to the insured. The matter has been reported to your office also.

Since to prove to the insurable interest the place of fire should be available on the face of the policy of on the endorsement (if any) during the period of policy and prior to the date of fire.

As we have not received any endorsement regarding the place of fire, we are not assessing the loss and closing the matter at our end. And request you to treat the claim accordingly.

Further, please note that if the liability of the claim arises in future, you may again refer the matter to us.

However, our Survey Fee (minimum) Bill No.UIIC/FR/03-04/240 dated 31.03.04 for Rs.4640.00 (Rup