NATIONAL INSURANCE COMPANY LTD Vs. JAGARLAMUDI SATYANARAYANA

JUDGEMENT

(1.) THIS is an appeal preferred by the Insurance Company against the order of the Dist. Forum in directing it to pay Rs. 66,943 with interest and costs.

(2.) THE case of the complainant in brief is that he was doing tobacco business and insured his godown for the period from 4.4.2002 to 3.4.2003 covering the risk for fire and other allied causes. While so on 29.6.2002 the godown was burnt and the entire tobacco stock was burnt and the said fact was informed to the appellant. It appointed a Surveyor who assessed the loss at Rs. 2,75,000. Suppressing the said fact, it had settled the claim at Rs. 2,07,347 which he received under a bona fide impression. Later he learnt the exact amount for which the Surveyor had assessed and therefore prayed the balance of Rs. 67,653 be paid together with interest, compensation and costs.

(3.) THE Insurance Company resisted the case. It alleged that after receipt of report, it had appointed a surveyor who visited the godown verified the stock register and statements submitted to the tobacco board. The Surveyor despite the fact that the statements submitted to the board with the remaining stock was not tallying and even without verifying the invoices and various sales of byproducts of stem assessed the loss basing on the figures and the stock register reflected in the auditors report. Later after considering the entire material in the presence of complainant the matter was settled at Rs. 2,07,347 towards full and final satisfaction on non -standard basis. The Surveyor report was not final and therefore prayed for dismissal of the complaint with costs.