NATIONAL INSURANCE CO. LTD Vs. HARSOLIA MOTORS

JUDGEMENT

(1.) The assail in the present appeals by special leave is to judgment and order passed by the National Consumer Disputes Redressal Commission (hereinafter "National Commission") dtd. 3/12/2004, whereby the National Commission, while reversing the finding of the Gujarat State Consumer Disputes Redressal Commission (hereinafter "State Commission"), regarding maintainability of the complaint filed at the instance of the respondent under the Consumer Protection Act, 1986 (hereinafter "Act, 1986") held that a person who takes insurance policy to cover the envisaged risk does not take the policy for the commercial purpose. Policy is only for indemnification of an actual loss and is not intended to generate profits and finally held that the respondent (insured) was a consumer as defined under Sec. 2(1)(d) of the Act, 1986 and the complaint filed at his instance was maintainable and be examined by the State Commission on merits.

(2.) Respondent no.1 (dealer in TATA vehicles) and respondent no.2 are the claimants. Respondent no.1 took out a fire insurance policy with the appellant for a cover of Rs.75,38,000.00 and respondent no.2 for a cover of Rs.90.00 lakhs. That on 28/2/2002, damage was caused to the goods of respondent nos.1 and 2 due to fire (during the course of Godhra riots). The appellant denied the claim of respondent no.1, while admitting the claim of respondent no.2 to the extent of Rs.54,29,871.00. The respondents filed complaint before the State Commission.

(3.) Respondent no.1 M/s Harsolia Motors, a commercial entity engaged in the business of sale of vehicles, took fire insurance policy from the appellant insurance company covering the office, showroom, garage, machinery lying in the showroom premises, etc. The grievance of the respondent was that their aforesaid premises were damaged during the Godhra riots on 28/2/2002. A complaint was instituted by the respondent, M/s Harsolia Motors, a partnership firm, before the State Commission, for compensation of damage caused on the ground that post-Godhra incident, which took place on 27/2/2002, riots broke out resulting into complainant's goods being destroyed by fire set up by rioters on 28/2/2002 and the respondent/complainant was entitled to be indemnified the insured sum under the policy of insurance.