SHAH AGENCY Vs. NEW INDIA ASSURANCE CO LTD

JUDGEMENT

(1.) This is an appeal filed by M/S Shah Agency, who were the complainant before the Gujarat State Consumer Disputes Redressal Commission. The case of the complainant, the present appellant before the State Commission, was that it had taken two insurance policies from the respondent/OP for coverage of the goods, machinery and other equipments. Policy number 1121020011878 was for coverage of machinery up to Rs. 9 Lacs and the second policy, number 1121020011881 was for coverage of stocks upto Rs. 20 lakhs. According to the applicant/complainant, on 01.02.1999 there was a fire in the factory due to electrical short-circuit which caused heavy damage.

(2.) On a claim by the complainant, the respondent/OP appointed a surveyor who gave his assessment of loss. During the course of the investigation by the surveyor it was revealed that for a single machine bought before the incident of fire, the complainant had two separate cost invoices. The insurance company sought clarification from the complainant and was not satisfied with reply. The respondent/insurance company therefore, rejected the claim as a fraudulent one and repudiated it for violation of condition number 8 of the policy. This condition reads "if the claim being in any respect fraudulent or if any false declaration be made or used in support thereof or if any fraudulent means or devices are used by the insured or anyone acting on its behalf to obtain any benefit under the policy or if the loss or damage be occasioned by the wilful action with the connivance of the insured, all benefits under this policy shall be forfeited. "

(3.) The state commission held that the decision of the insurance company to reject the claim could not be considered unreasonable or illegal. Therefore, the complaint was dismissed, by the State Commission.