NEW INDIA ASSURANCE COMPANY LIMITED Vs. ALKA TRIPATHI

JUDGEMENT

(1.) THIS is insurer's appeal under Section 15 of the Consumer Protection Act, 1986 against the order dated 6.3.2007 passed by the District Forum, Haridwar, thereby allowing the consumer complaint No. 138 of 2006 against the opposite party No. 1 -appellant, so as to direct the appellant to pay compensation of Rs. 78,500 to the complainant together with litigation expenses of Rs. 1,000. The consumer complaint was, however, dismissed against the opposite party No. 2 -Punjab National Bank.

(2.) IN brief the facts of the case are that the complainant, after raising loan from the opposite party No. 2 -Punjab National Bank, constructed a house and got the same insured with the opposite party No. 1 - The New India Assurance Company Limited against a risk of Rs. 6,00,000 for the period from 31.5.2004 to 30.5.2014 and the premium was paid to the Insurance Company through the opposite party No. 2 - bank. The policy also covered damage to the property due to earthquake. On 8.10.2005, an earthquake occurred, which caused damage in several parts of the property. The claim was lodged with the Insurance Company. The loss to the property was assessed at Rs. 1,04,780, but in spite of repeated requests and demands, the claim was not settled. The Insurance Company, however, repudiated the claim without any sufficient ground or reason. Alleging deficiency in service on the part of the opposite parties, the complainant filed a consumer complaint before the District Forum, Haridwar.

(3.) THE Insurance Company filed written statement and pleaded that the complainant had obtained Standard Fire Policy in respect of the residential building for a period of 10 years. On receipt of the intimation, the matter was investigated by the surveyor, who found that there were cracks in the Tripathi Nursing Home only and that too on account of regular seepage from open area and settlement in floor and foundation. It was also alleged that the loss was not covered under the policy and no deficiency in service has been made by the Insurance Company in repudiating the claim.