NEW INDIA ASSURANCE COMPANY LTD., REP. BY ITS BRANCH MANAGER NELLORE BRANCH, SUBEDARPET Vs. SAI IMPORTED FURNITURES, REP. BY SOLE PROPRIETOR G.SUDHAKAR REDDY

JUDGEMENT

(1.) Aggrieved by the order in C.C.No.123/2007 on the file of District Forum, Nellore, opposite party preferred this appeal.

(2.) The brief facts as set out in the complaint are that the complainant is doing business in furniture under the name and style of 'M/s Sai Imported Furnitures' at Jonnalagaddavari Street, Nellore. He obtained a Standard Fire and Special Perils policy from the opposite party vide policy bearing No.621101/11/04/0150 with the risk commencing from 31-12-2004 to 30-12-2005 wherein he insured his business stock for a sum of Rs.10 lakhs. On 27/28-10-2005 due to heavy rains at Nellore, the flood water entered into the complainant's business premises and caused damage to the stock worth Rs.8,00,000/-. On 28-10-2005 the complainant informed the same to the officials of the opposite party at about 10.30 a.m. and on the same day, the Branch Manager of the opposite party and a surveyor inspected the complainant's business premises and assessed the loss caused to the complainant. The complainant submitted that the surveyor of the opposite party assessed the loss for Rs.3,82,287/- and opposite party also informed about the final report and obtained the signature of the complainant and informed that the claim will be settled within a short time. The complainant submitted that thereafter the opposite party informed that the claim has been forwarded to the Divisional office, Ongole. The complainant approached the opposite party at Ongole and requested to settle the claim as early as possible and also wrote a letter 13-11-2004 but they failed to settle the claim. The complainant, therefore, got issued a legal notice dated 9-4-2007 demanding to pay the claim amount of Rs.3,82,287/- as assessed by the surveyor but there was no response. Hence the complaint for a direction to the opposite party to pay the claim amount as assessed by the surveyor at Rs.3,82,287/- together with interest at 24% p.a. from the date of assessment by the surveyor till the date of payment together with compensation of Rs.20,000/- and costs.

(3.) Opposite party filed counter denying the allegations made in the complaint. It admitted that the complainant insured his business with the respondent but denied that there was damage to a tune of Rs.8,00,000/-. Opposite party also denied that the Branch Manager also visited the premises and that the complainant approached the office of the opposite party at Ongole. Opposite party submitted that soon after the incident, a spot survey was conducted and a final surveyor was appointed to verify the damage sustained and he assessed the damage at Rs.3,82,287/- and the file was forwarded to the Divisional office for settlement. Lateron, B.Jagan Mohan Rao, Chartered Accountant of Ongole was appointed to scrutinize the claim folder who opined that he verified the entire claim folder and observed that the insured has not properly maintained records and not submitted returns to the Commercial Tax office. Most of the purchases are affected only in the month of October and the bills appear with close serial numbers and the bank statements submitted by the insured are only from 16-11-2005 whereas the incident occurred on 16-10-2005 and he felt that the purchase bills are not genuine and the turnover is not more than Rs.5,00,000/- and that the complainant has not obtained TIN or GRN number and the bills are old bills relating to before 31-3-2005'. Basing on the said report, the opposite party submitted that it has repudiated the claim vide letter dated 25-9-2007 and submitted that the claim of the complainant is devoid of merits and prayed for dismissal of the complaint.