ORIENTAL INSURANCE COMPANY LIMITED Vs. SUKHDEV SINGH

JUDGEMENT

(1.) THIS appeal by Oriental Insurance Company -opposite party No. 1 is directed against the order dated 22.3.2002 passed by District Consumer Forum -Amritsar whereby complaint bearing No. 1155/2001 filed by Sh.Sukhdev Singh, respondent No. 1/complainant was allowed with costs of Rs. 500 and appellant was directed to pay to the complainant a sum of Rs. 231355 along with interest @ 9% p.a. from the date of repudiation of claim i.e. 29.3.2001 till its actual payment.

(2.) THE parties hereinafter shall be referred to as per their ranking before the District Forum.

(3.) IN nutshell, the facts as set out in the complaint are that the complainant Sukhdev Singh was the sole proprietor of the concern Baba Kundan Singh Oil Industries which was dealing in manufacturing of cattle feed. The complainant got his factory building/machinery and stock insured with OP No. 1 vide cover note No. 548791 dated 28.3.2000 for a period of one year from 28.3.2000 to 27.3.2001. State Bank of India - OP No. 2 was the financier and as such cover note was also issued in its name on account of M/s. Baba Kundan Singh Oil Industries. The insurance cover for machinery, building and stock was for Rs. 5.00 lac each . It was alleged that except cover note no other document was issued by the OP Insurance Company. A fire broke out in the premises of factory of complainant on the intervening night of 10/11.10.2000 in which the stock of raw material burnt causing a loss of Rs. 6,63,850. The fire brigade extinguished the fire and gave its report. The matter was reported to the Police Station Sadar, Amritsar and report No. 26 dated 11.10.2000 was recorded. The Insurance Company was also informed and it deputed Sh.Sumant Sood, Surveyor to assess the loss who visited the factory on 11.10.2000 and inspected the site. The loss was assessed at Rs. 6,63,850 However, the claim of the complainant was repudiated on 29.3.2001 on the ground that the loss by fire was not covered under the insurance granted to the complainant. According to the complainant, the repudiation of claim was unwarranted and illegal as the loss was caused due to fire which occurred due to short circuiting and this fact had been confirmed by the report of fire brigade authorities also. Hence, alleging deficiency in service and unfair trade practice on the part of OP Insurance Company, the complainant filed complaint before the District Consumer Forum restricting his claim for indemnification of the loss to the tune of Rs. 4,95,000.