ORIENTAL INSURANCE CO. LTD. Vs. RACHPAL SINGH

JUDGEMENT

(1.) We have heard Mr. B. Singh learned counsel for the appellant as well as Mr. O.P. Thakur, learned counsel for the respondent in extenso.

(2.) This is an appeal filed by the Oriental Insurance Company Ltd. Against order dated 16-03-1995 of the J&K State Consumer Protection Commission, Jammu (hereinafter to be referred as the Commission) by virtue of which the appellant company has been directed to pay a sum of Rs. 40,000.00 to the respondent as claim amount, with interest at the rate of 18% per annum from 21-03-1990 till realisation and also to pay the damages on account of loss of business to the tune of Rs. 25,000.00 and Rs. 5000.00 as costs of litigation.

(3.) The factual matrix of the case in resume may be noticed. On the night intervening 20th and 21st March, 1990 there was a lightening as a result of which goods lying in the shop of the complainant were burnt and washed away by floods. Despite information extended to the Insurance Company, the claim of the complainant was neither assessed nor processed. It is not disputed that the claimant had taken Fire Policy 'B' of the insurance company effective from 01-08-1989 in respect of the 'Karyana' goods and other miscellaneous items in the shop. The policy was for a period of one year and it was to expire on 31-07-1990. The claimant had taken a loan from the Jammu & Kashmir Bank Ltd. Branch Ukhral against a stock insured in the shop, Intimation about the damage was given to the Insurance Company by the Jammu & Kashmir Bank Ltd., Branch Ukhral by telegram on 21-03-1990. the Insurance Company repudiated the claim vide communication dated 05-04-1990 in stating that the respondent/claimant had taken insurance Fire Policy 'B' and it did not cover the risk of Flood and other natural calamities and declined to entertain such claim.