UNITED INDIA INSURANCE COMPANY LIMITED Vs. SINDHI SWEETS

JUDGEMENT

(1.) It is an appeal against the order dated March 11, 1999 of the District Consumer Disputes Redressal Forum, Ludhiana (hereinafter called the "district Forum" ).

(2.) The facts as stated by the respondent-complainants (hereinafter called the "complainants") in the complaint are that Iqbal Singh, son of complainant Nos.2 and 3, had taken the insurance policy from the appellant-respondents (hereinafter called the "ops") covering the risk against the loss caused by fire and other allied perils of the stocks and machinery lying and stored in Premises No.4769, Ram Gali, Shiva Ji Nagar, Ludhiana, for a sum of Rs.3,50,000/-. The risk was covered for the period commencing from 20.1.1995 to 19.1.1996. The said concern had obtained a cash credit limit to the tune of Rs.1,00,000/- against hypothecation of stocks and had further obtained a facility of term loan to the tune of Rs.1,00,000/- against machinery from State Bank of Patiala, Saban Bazar, Ludhiana and as required under the terms of advancement of loan, the said concern through its proprietor Iqbal Singh had been regularly maintaining the stock registers and the same were duly supplied to the bankers by him. The stock statement as on 30.9.1995 was also submitted to the Bank by Iqbal Singh and the said stock statement was duly entered into the D. P. Register maintained by the State Bank of Patiala, Saban Bazar Branch, Ludhiana.

(3.) On the night intervening 14/15.10.1995 at 2.30 a. m. , a fire took place in the premises of M/s. Sindhi Sweets, 4769, Ram Gali, Shiva Ji Nagar, Ludhiana, and in spite of massive attempt to control the fire, the same could not be controlled by the proprietor of the firm as well as complainant No.2 and one Charanjit, Smt. Ranjit Kaur and Miss Gurpreet Kaur including persons living in the neighbourhood. Some of the persons including Iqbal Singh who made an attempt to control the fire sustained serious burn injuries. Iqbal Singh died in Christian Medical College and Hospital, Ludhiana due to burn injuries sustained by him. In the said fire, two scooters, i. e. one LML Vespa make which was new one and did not have any registration number as yet and another scooter of Bajaj Chetak make bearing registration No. PBN-3722 along with T. V. , refrigerator and other household articles were fully destroyed. The complainant had suffered a loss of Rs.6,01,863.95, but as the risk covered with the OPs was to the tune of Rs.3,50,000/-, the complainants sought compensation of Rs.3,50,000/- only. It was then stated in the complaint that the OPs had appointed their Surveyor, namely, Kiran Kapoor, Chartered Accountant of M/s. Kapoor and Associates, Surveyor and Loss Assessor. After considering all the aspects and details of loss, said Kiran Kapoor had assessed the loss of Rs.2,86,764/- and, in order to amicably settle the matter, the complainants were ready to accept the same, but the OPs had appointed another Surveyor, namely, M/s. P. Kumar Garg and Associates and the said Surveyor had reduced the amount of compensation payable to the complainants to a great extent and the same was not acceptable to the complainants in any case. The said Surveyor had miserably failed to give opportunity to the complainants to prove their loss and had recommended a sum of Rs.93,600/- as compensation, which was without any basis and was on much lower side. It was then stated in the complaint that as per law, after one survey report is taken by the Insurance Company from its own side and if final report is given by the said Surveyor, the OPs were barred to ask for any fresh report regarding assessment of loss. The claim had not been properly assessed by the second Surveyor and the records of the Bank which clearly proved the value of the stocks with the complainants had been ignored by the second Surveyor for the reasons best known to them and they had gone to the extent of disbelieving every version of the complainants in spite of the fact that the loss sustained by them was much more than the one which was being accepted by the complainants as assessed by the first Surveyor. The complainants had reported the matter to the police of Police Station Division No.6, Ludhiana, vide D. D. R. No.27, dated 15.10.1995, regarding taking place of devastating fire and the OPs were liable to pay the insurance amount of Rs.3,50,000/- to the complainants as compensation for the loss sustained by them. Ultimately, the complainants claimed Rs.3,50,000/- on account of damages to movable and immovable assets of M/s. Sindhi Sweets, Shivaji Nagar, Ram Gali, Ludhiana, along with interest @ 18% per annum on the assessed amount from the date of 14/15.10.1995 till the date of payment.