HOTEL SARA Vs. ORIENTAL INSURANCE COMPANY LIMITED

JUDGEMENT

(1.) Briefly put the case of complainant is that complainant has a big hotel at Aharbal comprising two complexes A and B. Complex A was commissioned in 1987. Complainant in the year 1988 wanted to construct one more building for the Hotel, Complex B and approached to State Financial Corporation for financial assistance. State Financial Corporation sanctioned Rs.16.58 lacs on 23.7.1988 meanwhile turmoil in the Valley started and the Complex B remained under construction. Complex A was completed with personal funds of the complainant.

(2.) Complainant had two insurance policies. Complex A was insured in the name of complainant alone under policy No.11/97/01255 and Complex B in the name of complainant and financier for a sum of Rs.11,60,000.00. Premium of Rs.2,320.00 was also paid. Insured building was under the occupation of security forces.

(3.) It was on 30.11.1996 that security forces vacated the premises but Chowkidar of complainant Ghulam Qadir Biswal was regularly keeping the watch and ward of the building. Just after one week the security forces left the building, the militants set on fire the hotel building. Complaint was raised. FIR was filed. O. P. deputed Irfan Alam Surveyor to conduct the preliminary survey. Thereafter the Omkar Bajnoo was appointed Surveyor to assessal the loss. Bajnoo assessed the loss for Rs.6.00 lacs. Surveyor held that there was total loss. Complainant pressed the O. P. for the settlement of the claim. Same was not settled but instead O. P. appointed investigator without the knowledge of the complainant so the complaint was filed for claiming compensation for Rs.10,60,000.00.