The court affirmed the importance of a surveyor's report in insurance claims, emphasizing that insurers must provide valid reasons for rejecting such reports to avoid allegations of deficiency in service.

JUDGMENT

Air Vice Marshal J Rajendra AVSM VSM (Retd)

1. This First Appeal u/s 19 of the Consumer Protection Act, 1986 (the Act”) is filed by the Appellant/OP against the Order dated 17.02.2016 of the State Consumer Disputes Redressal Commission U.P. (State Commission) in CC No.82 of 2010 allowing the Complaint and directing the OP to pay Rs.45 Lakh along with interest @ 12% p.a. from date of filing the complaint till actual realization and Rs.50,000/- as Compensation towards mental agony and Rs.5000/- as litigation costs.

2. As per Registry report, there is 35 days delay in filing this Appeal. For reasons stated in I.A. No.3874 of 2016, the said delay is condoned. 3. For convenience, the parties in present matter are hereinafter referred to as per position held in the Consumer Complaint.

4. Brief facts of the case, as per the complainant, are that the complainant, M/s NS Industries, a Government of India recognized star export house engaged in manufacture and export of home furnishing items since 1987, obtained a Fire and Special Perils Policy (Material Damage) Policy No. 421200/11/01/11/00001949 from the New India Assurance Company Ltd. (OP) for sum insured of Rs. 50,00,000, valid from 29.12.2001 to 28.12.2002. On 24.10.2002 a fire broke out at their premises located at Khatakpura Siddiqui, Farukhabad due to an electric short circuit. The fire was reported to the Fire Brigade, the local police station and the insurer without delay. Fire Service promptly responded and extinguished the fire. As per the fire brigade‟s report, the total value of damaged property was approximately Rs. 42 lakhs, while property worth Rs. 38 lakhs was salvaged. Subsequently, the complainant lodged a claim with the insurer. The OP appointed Mr. PC Shukla as Surveyor to assess the loss. The Surveyor conducted an inspection and sought various documents including accounts, invoices, and purchase records from the complainant. The complainant alleges that despite repeated assurances, the Surveyor failed to submit his report for several months, resulting in undue harassment and delay. Numerous reminders and representations by the complainant to OP yielded no result. Aggrieved by the inaction of the insurer and alleging harassment, the complainant filed a Consumer Complaint before the State Commission seeking Rs.45 Lakhs along with 12% interest from 23/24.10.2022, Rs.1,00,000 compensation for mental agony and Rs.50,000 as costs.

5. The OP appeared and filed objections, denying the complainant‟s allegations as false and baseless. They contended that the complainant failed to provide the documents requested by the Surveyor, which caused delays in the final report. Despite repeated communications and assurances from complainant, the required details were not submitted. Consequently, the claim was closed on 08.06.2007. OP asserted that multiple efforts were made to process the claim, but due to the complainant's non-compliance with policy terms, the claim was rightly rejected, and there was no deficiency in service on their part.

6. The learned State Commission vide order dated 17.02.2016 allowed the complaint with the following observations:

“ORDER

The complaint is being allowed. The opposite parties-insurance company is being directed to make payment of Rs. 45,00,000/- to the complainant firm on account of the eruption of fire within the premises of M/s N.S. Industries, situated at Khatakpura Siddiqui, Farukhabad against the Insurance Policy No. 421200/11/01/11/ 00001949 along with 12% interest per annum within a period of two months. The calculation of the interest shall be made from the date of filing of this complaint. In case this order is not complied with within the stipulated period, 14% interest shall be paid per annum on the aforementioned amount directed from the date of filing of this complaint till the date of actual payment.

The opposite party-insurance company is being directed to ensure the payment of Rs. 50,000/- to the complainant for the mental agony