NATIONAL INSURANCE COMPANY LIMITED Vs. ASHOK KUMAR BAROROO

JUDGEMENT

(1.) Would an insurance cover under the head 'fire policy' cover a loss caused on account of militant related violence when in the risks which are supposed to be covered, it is mentioned as riot, strike and malicious damage as per riot, strike and malicious damage clause printed hereof. According to the respondent complainant, when a fire policy is obtained containing the aforementioned clause and when loss of house-hold goods takes place on account of militant related violence, then notwithstanding the fact that loss is not caused on account of fire, even then, the Insurance Company is liable to compensate. Such is the view expressed by the State Commission also.

(2.) The respondent complainant had insured his house-hold goods to the tune of Rs. 45,000. These goods were lying in a house situated at Channapora, Srinagar. The insurance cover was valid for a period w.e.f. 2nd March 91 to 1st March 92. As per the complainant, on account of militancy in the valley, he had to migrate to Jammu. During his absence on 15th Sept. 91, the house of the complainant was ransacked by the militants. The goods of the value of Rs.45,000/- were removed. A report was lodged with the Police Station. A case under Ss. 380 and 457 of the Penal Code and also under S. 3 of the Terrorist Act was registered. It was pleaded that, no doubt, a fire policy was issued and as it covered malicious damage also, therefore, the Insurance Company was bound to compensate. This view was approved by the State Commission. The commission directed payment of Rs.45,000/-. Interest at the rate of 18% was allowed. A sum of Rs.10,000/- has been allowed as compensation for loss and injury. It is this view which is the subject matter of challenge in this appeal.

(3.) The learned counsel appearing for the Insurance Company submits that when a fire policy is issued, then compensation is to be allowed only if the resultant damage occurs on account of fire. Clause (4) on which reliance has been placed by the respondent complainant i.e. a damage caused by riots, strike and malicious damages can be resorted to when these acts lead to a fire and not to every consequence.