ORIENTAL INSURANCE COMPANY LIMITED Vs. ANAND STONE

JUDGEMENT

(1.) THIS appeal, under Section 15 of the Consumer Protection Act, 1986 , is directed against the order dated 18.6.2003 in Complaint No. 643/2002 by the District Consumer Disputes Redressal Forum, Raipur (hereinafter called the District Forum for short) directing the appellant to pay to the complainant/respondent No. 1 compensation of Rs. 40,319/ - with interest @ 9% per annum by 22.10.2001.

(2.) THE relevant averments of the complainant stated in brief are that his factory is situated at village Paragaon, District Raipur. The complainant obtained an insurance policy "Standard Fire and Special Perils Policy" through respondent No. 2 Bank, from appellant/insurer, Oriental Insurance Co. Ltd. The averments of the complainant further were that the premium was remitted to the appellant/insurer by respondent No. 2, Bank vide pay order dated 6.7.2001 upon which Policy No. 632/02 covering the risk from 6.7.2001 to 5.7.2002 was issued. It was further averred that on 9.7.2001, there was flood in the river Mahanadi resulting in damage to the factory of the complainant/respondent No. 1. The complainant intimated about the incident to the appellant on 9.7.2001 and also submitted claim form on 10.7.2001. Surveyor was appointed by the appellant/insurer. However, the claim of the complainant/respondent No. 1 was repudiated by the appellant/insurer by its letter dated 27.8.2001. The complainant, therefore, filed the complaint before the District Forum claiming compensation of Rs. 1,37,535/ - with interest @ 18% per annum.

(3.) THE complaint was resisted by the appellant/insurer, inter alia on the ground that the insurance policy of the complainant s factory was issued on 10.7.2001, i.e., after the factory was damaged due to flood on 9.7.2001. Hence, the risk as above was not covered under the policy. It was, therefore, averred that the complainant was not entitled to get any benefit under the policy.