ORIENTAL INSURANCE CO LTD Vs. ASHWANI HANDA

JUDGEMENT

(1.) This appeal has been filed by the appellant - Oriental Insurance Co. Ltd. against the order dated 24.09.2013 of the State Consumer Disputes Redressal Commission, Punjab (in short 'the State Commission'), passed in C.C. No. 89 of 2012.

(2.) The brief facts of the case are that respondent no. 1 / complainant availed loan of Rs.35 lacs from respondent no. 2 - State Bank of India for construction of his home.Respondent no. 2 sanctioned the loan and for securing primary interest and the loan, got the insurance from the appellant - Oriental Insurance Co. Ltd.The duration of insurance policy was w.e.f. 25.07.2011 to 24.07.2021.As per the arrangement letter, there was an insurance clause and the house was to be comprehensively insured for the market value covering fire, flood etc.The house was insured under 'Standard Fire & Special Perils' Policy for sum assured of Rs.40 lacs.The said building fell down due to rain and storm causing flood on 06.08.2011.The complainant was informed vide letters dated 20.06.2012 and 23.08.2012 that appellant has found in their investigation that there was no protection wall around the basement and the water was standing upto 5 - 6 feet high and the claim was not admissible as the construction was not covered under the policy, therefore, the OPs repudiated the claim.Aggrieved by the repudiation, respondent no. 1/ complainant filed a consumer complaint being C.C. No. 89/2012 before the State Commission.The complaint was resisted by the OPs on the ground that the loss did not occur as a direct result of rain or storm but due to increased level of sub-soil water and its penetration into the basement, which peril was not covered under the policy.The surveyor vide its report dated 25.01.2012 assessed the average gross loss to the tune of Rs.36,24,773/- and opined that claim was not payable for the same reason as stated by the OPs.The surveyor has concluded that the house was an under-construction house and same could not be covered under the said policy.However, the State Commission has allowed the complaint vide its order dated 24.09.2013 and directed the appellant to pay the amount of Rs.36,24,773/- as assessed by the surveyor to the respondent no. 2 - State Bank of India and the respondent no. 2 shall adjust the same against the loan amount of the respondent / complainant.

(3.) Hence, the present appeal.