SURVEYOURS WELFARE ASSOCIATION REGD Vs. UNION OF INDIA

JUDGEMENT

(1.) The pivotal questions involved in this writ petition are whether under section 64 UM of the Insurance Act, 1938 ( for short "the Act") any survey by an approved surveyor or loss assessor is necessary in respect of a claim of less than Rs.20,000.00 and whether or not such a claim can be settled by the Insurance company itself without the intervention of an approved surveyor or loss assessor.

(2.) The petitioner, an association of surveyors, represented by Mr.Dalip Wangu, a licensed surveyor has filed this petition. According to the petitioner, a claim of loss by an insured on the insurance company has First to be surveyed or assessed by a licensed surveyor or loss assessor, irrespective of the fact whether the claim is above or below Rs.20,000.00. The immediate provocation for filing this writ petition is provided by the statement of the Chairman-cum-Managing Director of the third respondent - Oriental Insurance Company which appeared in the issue of Economic Times dated 21st April, 94. According to it, (Annexurc-IV to the writ petition), the company will not employ licensed surveyors or loss assessors in respect of small claims of the value of less than Rs.20,000.00 and such claims would be settled by the Insurance company ilself. This decision is said to have been taken to simplify the procedures and to cut down delays. Before me it is not disputed by the third respondent that in case of claims which are less than Rs.20,000.00 in value, the insurance company will have in-house assessments made by its own staff and they will not seek reports from licensed surveyors or loss assessors. The petitioner's grievance is that this policy of the third respondent violates the provisions of section 64 UM of the Act. Besides, the policy is changed on the ground of the same being violative of Articles 14, 19 (1) (g) and 21 of the Constitution. In the writ petition, the petitioner's further plea is that the respondents 2 to 6 should strictly adhere to and comply with Section 64 UM of the Act and actions of the officials of the insurers acting as surveyors or performing the duties of surveyors in contravention of Section 64 UM of the Act be quashed.

(3.) The petition is opposed by the respondents on the grounds, inter alia, that the petitioner society not being a citizen is not entitled to complain of the alleged breach of Articles 19 (1)(g) and 21 of the Constitution. Moreover, it is pleaded that claims which are less than Rs.20,000.00 in value can be settled by the insurance company ilself without reference to the approved assessors or surveyors as the provision of Section 64 UM of the Act do not bar in house assessments or settlements of claims in such cases. It is denied that Articles 14, 19 (1)(g) and 21 of the Constitution have been infringed by settlement of such claims.