Surveyor's Report is Best Evidence for Loss Assessment, Can't Be Discarded Arbitrarily: UP State Consumer Commission - 2025-08-20

UP Consumer Commission Upholds Sanctity of Surveyor's Report, Modifies Payout in Auto-Rickshaw Accident Case

Lucknow, U.P. - Reaffirming a crucial principle in insurance law, the Uttar Pradesh State Consumer Disputes Redressal Commission has ruled that a surveyor's report is the most reliable evidence for assessing damages and cannot be disregarded without substantial reason. The Commission, comprising Hon’ble Mr. Justice Ajai Kumar Srivastava (President) and Hon’ble Mrs. Sudha Upadhyay (Member), partially allowed an appeal by ICICI Lombard General Insurance Co. Ltd., modifying the compensation awarded to an auto-rickshaw owner by the District Commission.

The bench held that the compensation should strictly adhere to the surveyor's assessment of ₹41,911, plus interest, overturning the District Commission's higher award.

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Background of the Dispute

The case originated from a complaint filed by Kuldeep Singh, who had purchased a TVS King auto-rickshaw on September 2, 2013, and insured it with ICICI Lombard. The vehicle met with a serious accident on November 9, 2013, during the validity of the insurance policy. An FIR was promptly filed, and the insurance company was notified.

ICICI Lombard appointed a surveyor to assess the damage, but subsequently rejected the claim on April 7, 2011 (likely a typo in the original judgment, should be post-2013), alleging misrepresentation and concealment of facts by the claimant. The primary point of contention was a discrepancy in the driver's name—the FIR named 'Rahul Kumar' as the driver, whereas the claimant later informed the surveyor that 'Mohan Das' was driving at the time of the accident.

Aggrieved by the claim rejection, Mr. Singh approached the District Consumer Disputes Redressal Commission, Gautam Budh Nagar. On May 13, 2022, the District Commission partially allowed the complaint, directing ICICI Lombard to pay ₹46,911 with 6% annual interest and ₹1,000 towards litigation costs.

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Arguments Before the State Commission

ICICI Lombard challenged the District Commission's order, arguing that it had wrongly ignored the expert assessment made by its appointed surveyor, Mr. Vivek Mishra, who had calculated the total loss to be ₹41,911.

The insurer's counsel contended that a surveyor's report is a technical and credible document prepared under the provisions of the Insurance Act, 1938. It was argued that the complainant had failed to provide any concrete evidence to discredit the report or prove that the surveyor had not followed the professional code of conduct.

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Legal Principles and Court's Observations

The State Commission meticulously examined the evidence and legal precedents to arrive at its decision. It emphasized the evidentiary value of a surveyor's report by citing several landmark judgments:

"The bench is of the considered opinion that the order passed by the learned District Commission...directing payment of the assessed amount of ₹41,911 based on the surveyor's report along with 6% per annum simple interest, is fully supported by evidence, and there is no reasonable justification or basis to interfere with it."

The Commission referenced the following key rulings:

* Supreme Court in Khatema Fibers Ltd. vs. New India Assurance Co. Ltd. : A surveyor's report determining the quantum of compensation cannot be negated unless an illegality or irregularity is proven.

* National Commission in United India Insurance co. Ltd vs. Shree Sai Laxmi Poultary Feeds & Anr : "Surveyor report in an insurance claim cannot be dismissed unless proven to be arbitrary & unreasonable."

* National Commission in D.N. Badoni Vs Oriental Insurance Company Ltd : A surveyor's report is the best evidence for determining compensation unless it is effectively rebutted by other evidence.

Based on this established legal position, the Commission found that the District Commission's decision to award an amount higher than the surveyor's assessment was unjustified.

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Final Verdict

The State Commission partially allowed the appeal and modified the District Commission's order. The final verdict is as follows:

1. ICICI Lombard General Insurance Co. Ltd. is directed to pay the claimant, Kuldeep Singh, the sum of ₹41,911 .
2. This amount will carry a simple interest of 6% per annum from the date of filing the original complaint until the date of full payment.
3. The insurer must also pay ₹1,000 towards litigation costs.

The judgment clarifies that the "service charge" of ₹5,000 (part of the District Commission's original award of ₹46,911) was baseless and has been set aside. The ruling reinforces the critical role of independent surveyors in the insurance claim process and sets a clear standard for challenging their findings in consumer courts.