VAKAT LAV KUMAR PROPRIETOR, SANTHI GENERAL STORES RAJAJI STREET, NELLORE Vs. BRANCH MANAGER UNITED INDIA INSURANCE COMPANY LTD

JUDGEMENT

(1.) This is an appeal preferred by the complainant against inadequacy of compensation granted by the Dist. Forum.

(2.) The case of the complainants in brief is that complainant No. 1 is the proprietor of Shanthi General Stores, while complainant No. 2 is the owner of premises bearing No. 17/3, Rajaji Street, Nellore. They insured the building for Rs. 19 lakhs and the stock in trade for Rs. 20 lakhs covering the period from 4.2.2005 to 3.2.2006. While so on 4.9.2005 that there was fire accident due to which out of the stock worth Rs. 13,30,475/-, the stock worth Rs. 5,64,227/- was completely destroyed while stock worth Rs. 4,28,935/- was partly damaged. Apart from it, computers, printers and scanners worth Rs. 2 lakhs were damaged. A qualified engineer estimated the damage to the building at Rs. 1,25,000/- On a report the police registered a case and also by the fire department. When the insurance company did not settle the claim, they have issued notice for which , it agreed to pay Rs. 3,50,000/- which was not acceptable to them. In fact damage to the stocks itself was Rs. 5,64,127/-, and the damage to the computers, printers and scanner etc. was Rs. 2 lakhs. Therefore they sought for Rs. 9,82,162/- for the stocks damaged , Rs. 1,25,000/- towards building damage, and Rs. 2 lakhs for computers etc. damage in all Rs. 13,17,162/- with interest @ 12% p.a., from 4.9.2005 till the date of payment together with compensation of Rs. 50,000/- and costs of Rs. 10,000/-.

(3.) The insurance company resisted the case. While admitting issuance of policies one for building and another for stock, it alleged that when loss was informed Sri L. C. Rami Reddy, insurance surveyor and loss assessor was appointed. He estimated that out of stock worth Rs. 7,66,347/- stock worth Rs. 4,28,034/- was damaged and after deducting policy excesses he assessed the loss at Rs. 4,18,034/- which it has agreed to pay. It denied the liability of payment of Rs. 2 lakhs towards damage to the computers, printer and scanner etc. they being not covered under the policy. It had agreed to pay Rs. 50,000/- towards damage to the building vide report of the surveyor dt. 26.7.2006. The major parts of trading items were preserved in the rear two rooms which were not at all affected by fire. The complainant did not file the requisite documents viz., books of accounts, sales tax returns etc. After considering the various damages they arrived the net loss at Rs. 3,50,000/- towards full and final settlement which the complainants did not agree, and therefore it prayed for dismissal of the complaint with costs.