ASHWANI TEXTILES Vs. ORIENTAL INSURANCE CO LTD

JUDGEMENT

(1.) IN this original petition, complainant is a partnership firm and wholesale dealers of M/s. Vimal Suitings and M/s. Mafatlal Shirting for the State of Haryana and have their showroom, inter alia, at Bhiwani. The complainant had got his showroom insured for a sum of Rs. 40 lakhs and paid a premium of Rs. 8,020/- covering the period from 30.10.1996 to 29.10.1997 vide Cover Note No. 321675.

(2.) IT is alleged in complaint that the opposite party Insurance Company had not issued the stamped policy. The case of the complainant is that on 20.4.1997 at about 0235 hours fire caused by electrical short circuit gutted the whole showroom and all the books of accounts and other records were also burnt in the said fire. Though the fire brigade fought for two hours, nothing could be saved. As per the fire brigade, the fire was 'major fire' and 90% of the total contents of the stocks were damaged in the fire. On report being lodged with the police, they also found that the source of the fire was short-circuit. The Insurance Company, on being informed about the damage caused by the fire, deputed a Surveyor, Mr. O.P. Gupta, who visited the site on the same day i.e. 20.4.1997 and took a number of photographs which show the effect of fire. It is alleged in the complaint that the Surveyor did not allow the complainant to segregate the salvaging of the damaged and water damaged Than of cloth so that the loss could be minimised and insisted upon the complainants to keep the remains of the stock, locked in a room for examination by yet another Surveyor to be deputed by the opposite party, as a result the strength of the fibre became weak and it reduced such Than to no value.

(3.) THE opposite party then deputed yet another firm of Surveyors, M/s. P. Kumar Garg and Associates who had also visited the site on 22.4.1997 and instructed the complainant to keep all the damaged material/cloth which was burnt as well as wet stock for the consideration of the insurers. On 29.5.1997 the opposite party directed the complainant to keep all the damaged/semi-damaged and safe stocks intact till the finalisation of claim amount, which direction, according to the complainant, aggravated the loss, as it lead to further deterioration of the cloth. The second Surveyor collected the claim form for Rs. 38,73,695/- from the complainant on 21.5.1997. In spite of all the documents/necessary information being forwarded to the opposite parties from time-to-time, the opposite parties had written a letter to the complainant on 6.6.1997 requiring some more details which were also forwarded by the complainants. The allegation of the complainant is that the Surveyors started making unreasonable and illegal demands upon them and threatened that unless those demands were met, the complainants should not hope for a fair settlement and that the settlement which may be offered would be for a small amount as their entire amount of loss in respect of the stocks totally burnt would be excluded. In spite of the personal visits by the complainant and written requests by way of letters, there was no response from the Insurance Company till 9.9.1997. On 15.9.1997 the complainant was informed that the second Surveyor, M/s. P. Kumar Garg and Associates, had assessed the loss at Rs. 3.66 lakhs taking into consideration the stocks shown to the preliminary Surveyor to him. The complainant vide letter dated 17.9.1997 written to the opposite parties requested them to properly assess the loss as the assessment made was not acceptable to him. Thereafter, he had also written a letter dated 25.9.1997 to this effect to the opposite party No. 2, which fell on deaf ears. On 14.10.1997 the complainant had met the officers of the head office of the insurers, i.e. opposite party No. 3, who, after taking into the evidence placed before them, appointed an experienced reputed firm of Surveyors, M/s. K.D. Kohli and Co. Pvt. Ltd. to reassess the loss actually suffered by the complainant. Thereafter, M/s. K.D. Kohli and Co., Surveyors, visited the spot, obtained a large number of documents and discussed with the various persons. And, according to the complainant, he had learnt during the discussions at the office of the opposite parries that M/s. K.D. Kohli and Co. had submitted their report in early June, 1998 and had assessed the loss suffered by the complainants to be around Rs. 30 lakhs. Since then, till the date of filing of the complaint, i.e. 25.8.1998, in spite of a number of personal visits, writing letter, the claim was not settled, which ultimately, lead the complainant to approach the National Commission by way of this original petition claiming the following reliefs :