NYLOFILS INDIA LTD Vs. ORIENTAL INSURANCE COMPANY LTD

JUDGEMENT

(1.) Complaint was filed, inter alia, alleging that the complainant is a limited company carrying on manufacturing of Nylon Filament Yarn and it makes fishnets out of it. Complainant purchased Fire Policies as detailed in para No. 1 of the complaint from the opposite party-Insurance Company.

(2.) During the currency of policies on 21.6.1997, a fire took place in the complainant's premises due to electrical spark and short circuiting in one of the electrical motors. Fire Brigade and the police were intimated of the occurrence. Opposite party-Insurance Company too was informed of the occurrence. Lastly, R.L. Agarwal was appointed as Surveyor by the Insurance Company to conduct a fresh survey. It was further alleged that the complainant was forced to agree to accept amount of Rs. 9,79,763 towards full and final settlement of the claim by the Insurance Company This amount was accepted by the complainant without prejudice to its rights. Attributing deficiency in service, direction was sought to be made to the Insurance Company to pay the balance amount of Rs. 33,98,604 being the actual loss suffered by the complainant with interest as also compensation of Rs. 10 lakh. Opposite party contested the complaint by filing written version. It was alleged that the amount of Rs. 9,79,763 was received by the complainant voluntarily towards full and final settlement of the claim and the complaint is, therefore, not maintainable. Complaint was stated to be bad for non-joinder of the bank named in the policies. Amount paid was arrived at after examining the Surveyor's report, Investigator's report and other documents after due application of mind by the opposite party. Documents/invoices submitted in support of the claim by the complainant were fake/forged. Denying deficiency in service, liability to pay the amount paid was emphatically denied.

(3.) Order dated 4.8.2010 notices that R.L.Agarwal, final Surveyor had assessed the loss at Rs. 14,00,762. Opposite party-Insurance Company had offered to pay to the complainant an amount of Rs. 13,80,780 by way of settlement of claim. However, the actual amount paid to the complainant was Rs. 9,79,763. There was no material on record to suggest how the loss as assessed by the final Surveyor was reduced by the Insurance Company from Rs. 14,00,762 to Rs. 9,79,763. A responsible officer of the Insurance Company was, therefore, directed to remain present along with the claim file showing how the claim was reduced from Rs. 14,00,762 to Rs. 9,79,763 on 9.8.2010.