NEW INDIA ASSURANCE COMPANY LIMITED Vs. BALAK RAM

JUDGEMENT

(1.) Appellant is aggrieved by the order dated 30.10.2013, of learned District Consumer Disputes Redressal Forum, Mandi, whereby a complaint, under Section 12 of the Consumer Protection Act, 1986, filed against it, by respondent -Balak Ram, has been allowed and a direction given to it (the appellant), to pay a sum of Rs.11,38,976/ -, with interest at the rate of 9% per annum, from the date of filing of the complaint, to the date of payment of the aforesaid amount of money, and also to pay Rs.6,000/ - as compensation and Rs.3,000/ - as cost of litigation.

(2.) Admitted facts are that respondent -Balak Ram is a contractor, registered with Public Works Department of Himachal Pradesh. He had been allotted work of construction of road, the cost of which was Rs.1,39,99,617/ -. Respondent got the project insured with the appellant, in the sum, equivalent to the cost of work, and paid a premium of Rs.28,018/ -. Policy was effective from 11.07.2011 to 10.07.2012. During the currency of insurance policy, in the month of August, 2011, due to heavy rains, there was a landslide, causing damage to the insured project. Loss was got assessed by the respondent from an Executive Engineer, Himachal Pradesh Public Works Department. Loss, in terms of money, as assessed by the Executive Engineer, was to the tune of Rs.11,91,646/ -.

(3.) Claim was lodged with the appellant by the respondent. A Surveyor was deputed, who assessed the loss at Rs.52,670/ -. Cheque for the aforesaid amount of money was sent to the respondent, who accepted the same, under protest, and filed a complaint, under Section 12 of the Consumer Protection Act, 1986, seeking a direction for payment of the remaining amount of money, on account of insurance claim, besides seeking compensation for harassment and litigation expenses.