SAWHNEY BROTHERS Vs. NEW INDIA ASSURANCE CO LTD

JUDGEMENT

(1.) The complainant is engaged in export of readymade garments and allied products. The complainant had taken coverage of all types of risks including fire vide Insurance Policy Nos.1131090302945 & 1131090302989. According to the complainant, the insurance coverage is being taken from the OP/Insurance Co. for more than 2 decades and every year insurance premium of more than 5,00,000/- was paid, but not a single insurance claim relating to any loss pertaining to fire loss of goods in transit was claimed except that in the year 1984, the entire property of Group of Companies was looted and burnt in respect of which claim has been filed.

(2.) On 17.5.1998, fire broke down in the factory and the fire information was conveyed to the Insurance Company on 18.5.1998. The Opposite party-Insurance Company had initially appointed surveyor M/s. J.D. Gulshan & Company, New Delhi, but subsequently the Insurance Company had deputed surveyor, M/s. V.N. Sarin & Company. According to the complainant, the entire loss was to the tune of Rs.91,99,844/-. The complainant wrote numerous letters to the Insurance Company for early settlement of the claim on account of financial hardship. The complainant insisted that the claim should be settled on gross loss basis and without deducting the salvage value, as the complainant was not interested in retaining the salvage. The surveyor after discussion with Mr. D.S. Sahni, Partner of the firm prevailed upon him and made him agreeable for retaining the salvage at Rs.6,15,000/-. The surveyor had promised that if the proposed salvage value of Rs.6,15,000/- was accepted, the claim would be settled within fortnight. Under this compelling circumstances, Mr. D.S. Sahni, Partner of the firm reluctantly agreed and accepted amount of Rs.6,15,000/- towards the salvage value. It is further contended by the complainant that the complainant was forced to accept assessed loss by Surveyor at Rs.67,13,000/- and give in writing by letter dated 12.10.1998 to Insurance Company. The complainant was asked to preserve the salvage till there is intimation to the contrary from the Opposite party-Insurance Company. The surveyor submitted final surveyors report dated 17.10.1998 for Rs.67,13,000/-. The complainant exchanged numerous correspondences with the Insurance Company requesting for disbursement of claim assessed by the surveyor who had assured that the assessed claim would be definitely paid by the Insurance Company within 15 days from the date of acceptance. Subsequently, the surveyor of the Insurance Company was forced to re-assess and submit revised assessment report after deducting additional salvage valued at Rs.3,02,019/- vide letter dated 11.5.1995 and the assessed loss was reduced to Rs.64,10,981/-, which was paid and received by the complainant under protest in May, 1999.

(3.) According to the complainant, the Insurance Company did not permit the complainant to dispose of the salvage and asked him to preserve the same on account of which, the complainant had to suffer loss and ultimately, the salvage could be sold only for a paltry sum of Rs.25,000/-.