JAIN SILKS Vs. INSURANCE OMBUDSMAN

JUDGEMENT

(1.) THE Writ Petition is filed praying to issue a writ of certiorarified mandamus, calling for the records of the first respondent in his Award no. 10 (CHN)/g/109-2005-06 dated 24. 3. 2006 and quash the same and consequently direct the respondents 1 and 2 to pay claim amount for Rs. 14,00,000/- with interest at 12% p. a.

(2.) THE petitioner owns the premises consisting ground plus two floors and is running a textile shop. Petitioner insured the building with M/s. New India insurance Company, the third respondent under the Standard Fire and Special perils Policy for the period from 11. 10. 2004 to 10. 10. 2005 for a sum of rs. 30,00,000/- and paid the premium thereon. According to the petitioner, on 23. 7. 2005 at about 10. 30 p. m. , the owner of the adjoining vacant site undertook some construction work and in that process there was excavation of the earth using JCB Poclain machine. Due to use of heavy machinery and removing of mud and earth to a large extent, the foundation of the petitioner's building eroded and the foundation lost its stability and developed cracks. The JCB poclain machine operator was informed to stop the work which was not heeded, resulting in a complaint to the Inspector of Police, Thanjavur East Police Station. It is also stated that the driver of the vehicle was arrested by the police.

(3.) PETITIONER estimating his loss due to the illegal act of the poclain operator claimed a sum of Rs. 14,00,000/- from the third respondent insurance company with interest and Rs. 1,00,000/- towards mental agony. The third respondent repudiated the claim stating that the claim is not covered by the policy. Thereafter, on 8. 12. 2005, the petitioner preferred a complaint before the first respondent, viz. , the Insurance Ombudsman by invoking Rules 15 (1) and 16 of the Redressal of Public Grievances Rules, 1998.