SENIOR DIVISIONAL MANAGER Vs. DHARAM SINGH

JUDGEMENT

(1.) WE have heard Mr. Sunil Malhotra, learned counsel for the appellants as well as Mr. K.L. Pandita, advocate on caveat, for respondent. Considering the facts and circumstances of the case, we propose to dispose of this appeal (CMA No. 106 -A/2001) at the preliminary stage.

(2.) THIS is an appeal against the order dated: 19 -09 -2001 of the Jammu and Kashmir State Consumers Protection Commission (State Commission ), by which the State Commission awarded a sum of Rs. 1,30,000/ - in favour of the respondent, on account of extensive damage caused to the building due to heavy rains and floods, along with interest at the rate of 9% payable from three months after the date of survey report.

(3.) BEFORE we proceed to examine the question raised in appeal by the appellants, it is expedient to take note of the material facts. A three storey residential house along with household goods were got insured by the complainant with the National Insurance Company for a sum of Rs. six lacs and paid a premium of Rs. 643/ -, the risk covered by the Insurance Policy included the risk of the flood. During the subsistence of the Insurance Policy, the house of respondent -complainant was damaged due to rains and floods when FIR came to be lodged with the Police Station, Kistwar. The Insurance Company was also informed about the loss occasioned to the house of the complainant insured with the Insurance Company. Subash Saraf, Surveyor was detailed by the Appellants -Insurance Company to estimate the loss. The Surveyor assessed and estimated the loss to a sum of Rs. 1.30 lacs. Refusal of the Appellants to indemnify the complainant in respect of extensive damage caused to the building insured with the Company led the respondent to commence a complaint with the State Commission. The stand of the Appellants before the State Commission was that the claim of the respondent -complainant is covered by the exclusion clause of the Insurance Policy and the claim is not, thus, payable. The State Commission after hearing the parties and perusing the record allowed the claim of the complainant and directed the payment of the amount of loss assessed by the Surveyor with interest at the rate of 9%.