ORDER

DR. SADHNA SHANKER, MEMBER

1.       This appeal has been filed under section 19 of the Consumer Protection Act, 1986 in challenge to the Order dated 01.11.2013 of the State Commission in complaint no. 02 of 2013, whereby the complaint of the complainant was allowed, directing the appellant - insurance company to pay Rs. 17,63,265/-, with pending and future interest at the rate of 9+2% from 10.09.2012 till payment along with compensation of Rs. 50,000/- towards harassment, mental pain and agony etc. and cost of Rs. 10,000/-.

2.       We have heard the learned counsel for the appellant – insurance company and the learned counsel for the respondent - complainant and perused the record including the State Commission’s impugned Order dated 01.11.2013 and the memorandum of appeal.

3.       The appeal has been filed with reported delay of 26 days.

In the interest of justice, inter alia considering the reasons given in the application for condonation of delay, the delay in filing the appeal is condoned.

4.       The brief facts of the case are that on 11.01.2012 the complainant – respondent obtained  a ‘Standard Fire and Special Peril Policy’ in respect of shack / restaurant, namely, ‘Kneez Up’ situated at 8/7A, Chally Village Pale, Velsao, Goa, by paying a premium of Rs. 26,031/- for sum insured of Rs.40,00,000/-.  The policy was valid from 11.01.2012 to 10.01.2013. During the subsistence of the insurance policy, on 15.05.2012 at about 02.15 hrs. a major fire occurred in the said shack / restaurant and the shack / restaurant got entirely damaged and the loss occurred to the complainant. The information about the said incident was given to the police, the State Fire and the emergency services as also to the insurance company. The insurance company appointed the independent surveyor and the investigator to conduct the survey and the investigation of the case. The investigator submitted his report on 06.07.2012. The surveyor vide its survey report dated 10.08.2012 assessed the loss at Rs.17,63,265/- and concluded that the fire brigade and the police authorities had not been able to identify the cause of fire. The complainant submitted the insurance claim form to the insurance company. The insurance company vide its letter dated 16.07.2012 repudiated the claim of the complainant on the ground that the complainant had misrepresented the material facts and non-disclosure of material facts to the insurance company while obtaining the insurance policy.

5.       Aggrieved by the repudiation by the insurance company, the complainant filed a complaint before the State Commission. The State Commission vide impugned Order dated 01.11.2013 allowed the complaint and directed the insurance company to pay Rs. 17,63,265/-, the loss assessed by the surveyor, with pending and future interest at the rate of 9+2 % from 10.09.2012 till payment. The compensation of Rs. 50,000/- towards harassment, mental pain and agony etc. along with cost of Rs. 10,000/- were also awarded. The amounts were ordered to be paid within 30 days, failing which, the amounts as ordered would carry interest at the rate of 9% per annum till payment.

6.       Aggrieved by the said Order of the State Commission, the insurance company filed the instant appeal before this Commission.

7.       Learned counsel for the appellant – insurance company has submitted that at the time of obtaining the insurance policy, complainant had concealed the fact that the property in question was illegal as show cause notice dated 05.01.2012 was issued to the complainant for illegal construction of the temporary structure. He also suppressed the fact that the Panchayat had issued a show cause notice of demolition of temporary shack on 07.03.2012. He further submits that the descriptions of the property to be covered under captioned policy as ‘Restaurant’ in Annexure – I and ‘Super structure building’ in Annexure – II and the temporary shack gutted in the fire was neither a restaurant nor a super structure bu