Repudiation of an insurance claim based solely on the disposal of damaged stock before inspection is impermissible if the loss is not denied; however, the court may apply a reasonable percentage deduction to determine the final quantum of loss.

ORDER

(Per: Ms. Kumkum Rani, President):

This appeal has been directed against the impugned judgment and order dated 06.02.2023 passed by learned District Consumer Disputes Redressal Commission, Pauri Garhwal (hereinafter to be referred as “The District Commission”) in consumer complaint No. 27 of 2018, styled as Sh. Sanjeev Anand Vs. General Manager, Universal Sompo General Insurance Company Limited and another, wherein and whereby the consumer complaint was allowed and the appellant – insurance company was directed to pay the insured amount of Rs. 6,50,000/- to respondent No. 1 / complainant on account of damage of stock kept in the insured shop due to fire, besides to pay Rs. 10,000/- towards mental agony and Rs. 6,000/- towards litigation expenses, in all, Rs. 6,66,000/-, within a period of one month, failing which, the respondent No. 1 / complainant was further held entitled to interest @7% p.a. on the aforesaid amount from the date of the impugned judgment and order till payment.

2. The facts giving rise to the present appeal, in brief, are, as such that the respondent No. 1 / complainant is running a provision store under the name & style of Anand General Store near Community Hospital, Srinagar, Pauri Garhwal, of which he is the Proprietor. On 24.10.2018 at 3:00 p.m., fire broke out in the aforesaid shop due to short circuit, with the result that the gas cylinder kept in the shop exploded, due to which the fire spread to the top floor as well as store room. The intimation of the fire mishap in the insured shop was immediately given by the complainant to P.S. Kotwali, Srinagar, whereupon the Fire Service Unit reached at the spot at 3:26 p.m. and remained occupied till 6:00 p.m. in extinguishing the fire. On account of fire, the complainant suffered loss of Rs. 7,05,600/-. The shop was insured with the appellant / opposite party No. 1 (insurance company) under Shopkeepers Package Policy, valid for the period from 28.12.2017 to 27.12.2018 against fire and allied perils etc. The fire in the insured shop broke out during the currency of the insurance policy. The complainant lodged claim with the insurance company for insured sum of Rs. 6,50,000/-. Sh. Saurabh Kumar Agrawal, surveyor / loss assessor appointed by the insurance company through his letter dated 12.11.2018 sent through e-mail, declined to pay the insured amount. Therefore, the consumer complaint was submitted by the complainant before the District Commission.

3. The appellant / opposite party No. 1 (insurance company) filed written statement before the District Commission and pleaded that upon receipt of intimation of fire in the insured shop, the insurance company had appointed Sh. Saurabh Kumar Agrawal, surveyor / loss assessor, as surveyor for assessment of loss, who submitted his report dated 22.11.2018 to the insurance company, stating therein that the claim is not payable, as entire damaged stock was found already disposed of by the insured before inspection visit. However, in the alternative, loss was assessed as Rs. 1,65,781/-. On the basis of the survey report, the claim was repudiated vide letter dated 26.11.2018.

4. The respondent No. 2 / opposite party No. 2 (bank) filed written statement before the District Commission and pleaded that the claim is payable by the insurance company and the bank has got no concern with the matter in issue.

5. The District Commission, after hearing learned counsel for the appellant – insurance company as well as learned counsel for respondent No. 2 – bank and after taking into consideration the written argu