ORDER

The Complainant is a Cotton Ginning Company for which it has stocks of cotton, cotton loose, cotton seeds that emerge after ginning and utilized for preparation of oil and oil cases, and it is for these stocks that insurance policies have been under taken namely the Special Fire and Perils Policy to secure the goods against any losses. The present Complaint is in relation to a loss occurred due to a fire on 03.05.2011 causing damage to the cotton, cotton bales and other materials that were stocked in the two godowns at the premises in question and also stocked outside the godown in the open area. The entire loss included raw as well as finished cotton.

2. The insurance policies were taken from the two Insurance Companies namely the New India Assurance Co. Ltd. the Opposite Party No.1 and the National Insurance Co. Ltd. the Opposite Party No. 2 herein. The surveyors were appointed who assessed the loss. The cause of fire was suspected to be accidental and then the loss was assessed in respect of the policies taken from both the Insurance Companies.

3. The three polices taken from the New India Assurance Co. Ltd. were one for the goods in godown no.1&2, one for the goods in godown no.5 and one for all stocks in the entire premises. The sum insured for each of the polices is different. Simultaneously, the policy taken from the National Insurance Co. covered all stocks in the entire premises.

4. The surveyors indicated that in view of the fact that the fire was accidental, the claim was found to be admissible. However on the stocks, the surveyors opined a lesser amount of loss as claimed by the Complainant keeping in view the stock statements the audited accounts as well as their own calculation with regard to the quantum of the cotton lost in the fire. An addendum survey report was submitted to the National Insurance Co. clarifying the policies and the insured amount therein.

5. After the entire exercise was done, the correspondence was exchanged regarding the queries raised and the information given by the Complainant. After having considered the report of the surveyors, the Opposite Party No.1 New India Assurance Co. settled the claim with the Complainant in respect of the loss due to fire for a sum of Rs.76 lakhs. A discharge voucher to that effect recording an agreement to accept the full and final amount as settlement and discharge of all claims dated 23.10.2012 is on record which is extracted hereinunder:

6. This was satisfied by tendering the said amount to the HDFC Bank with which the stocks were hypothecated.

7. The said amounts received were credited to the account of the Complainant. There is no averment in the entire Complaint or in the pleadings or evidence of the Complainant that prior to the issuance of the discharge voucher or even at the time of accepting the offer, the said amounts were preceded by any protest or objections regarding the settlement. There is no averment about the said settlement having been arrived at on the exercise of any duress, undue influence, threat or coercion by the New India Assurance Co.

8. On 08.11.2012, the Complainants after almost 15 days of having accepted the amount dispatched a letter stating that they had received it under protest and that this was done in order to avoid the harsh actions that might be taken by the Bank. It was further averred that the Complainants reserve their right to stake their claim with regard to recovering the balance amount as they did not treat the settlement as full and final. In one of the paragraphs it has also been alleged that the cheques were sent directly to the bankers without their consent and therefore it is an ad-hoc payment pending final settlement. The said letter of protest dated 08.11.2012 is extracted hereinunder:

“date:08/11/2012

To,

The New India Assurance Company Limited Ravin Chambers,

9-Bhaktinagar Station Plot,

Opp: Patel Dharmashala,

Rajkot-360 002

Sub: Fire Claim under policies issued by you

Loss due to Fire on 02-03/05/20