RAJA TOBACCO TRADERS Vs. NATIONAL INSURANCE CO LTD

JUDGEMENT

(1.) The consumer dispute raised in the present complaint is in regard to the non-settlement of an insurance claim lodged by the complainant with the Insurance Company seeking indemnification of the loss suffered by it on account of the loss /damage to the stock of tobacco stacked in a godown which caught fire in the wee hours of 4.10.2000.

(2.) In nutshell, the case of the complainant is that it is engaged in the business of tobacco and is registered with Tobacco Board for carrying its business. The complainant had availed financial services from opposite party No. 2 Andhra Bank and was enjoying the facilities. In order to safeguard its interest to the stock of tobacco, the complainant had obtained two insurance policies, one a Fire Policy bearing number 550900/2000/3100071 in the sum of Rs. 60,00,000 for the period 22.4.2000 to 21.4.2000 and another Fire and Special Perils Policy No. 550900/2000/3100342 in the sum of Rs. 10,00,000 which was valid from 23.7.2000 to 22.7.2001, by paying the requisite premium. The complainant had hired a godown in the town of Tangutur where he had stored the tobacco in bales as well as in gunny bags. According to the complainant, the value of the tobacco stored in the said godown was Rs. 71,00,000. As the ill luck would have it, on 4.10.2000 at about 3.00 a.m., fire incident was reported in the godown and fire tenders were summoned at the spot and the fire could be extinguished after several hours as a result of which, most of the stock of tobacco lying in the godown was damaged. Complainant being informed of the fire incident reached the spot at about 10.00 a.m. and lodged a report with the police. Even before that, the preliminary surveyor of the Insurance Company on getting the information about the fire incident reached the spot and made inspection of the site when the fire was still in progress. After two days, complainant lodged a claim of Rs. 71,00,000 with the opposite party-Insurance Company. It would appear that preliminary surveyor N., Varhaswamy who had visited the spot between 4th October to 6th October, 2000 submitted his preliminary report dated 24.10.2000. In the said report, as to the cause of occurrence, the preliminary surveyor observed as under:

(3.) In regard to the extent of loss due to the fire to the stock of tobacco, the said surveyor observed that claim made by the complainant was exaggerated as according to Surveyor, the tobacco which was subjected to fire was spurious and market value of which could not be more than 17,00,000. Thereafter, Teccons and Co., Surveyors, Loss Assessors were appointed as Surveyors who submitted their interim report. In regard to cause of loss, the report observed as under: