T. ODELU Vs. NEW INDIA ASSURANCE COMPANY LTD

JUDGEMENT

(1.) Since the facts of these complaints and the question of law involved is similar, we propose to deal all the above mentioned complaints by a common order. The above mentioned complainants are Beedi leaves contractors by profession and their work involves procuring Beedi leaves as a main raw material for the manufacturing of Beedis. The leaves are procured directly from the Government of Andhra Pradesh through its Forest Department in Andhra Region and the Andhra Pradesh Forest Development Corporation Ltd., in Telengana region. After the leaves are procured, they are cured in sun. In order to insure the stocks of processed and Beedi leaves under process, the complainants had obtained (i) Fire Policy No. 610 902/11/ 00/00032 effective from 30.4.2000 to 29.5.2000 in the sum of Rs. 70 lacs; (ii) 610 902/11/00/ 00035 effective from 28.4.2000 to 29.5.2000 in the sum of Rs. 35 lacs; (iii) 610 902/11/00/ 00034 effective from 28.4.2000 to 29.5.2000 in the sum of Rs. 68 lacs respectively, which covered stocks lying in the open fields/Khallas and the peril under the policy covered Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado. Flood and Inundation. According to the complainants on 17.5.2000 and 18.5.2000, i.e. during the validity of the insurance policies, the stock of Beedi leaves was in the process of "sun-curing" in open but due to stormy weather accompanied by gales and rains, the bundles of Beedi leaves got separated and leaves were blown off and washed away from the site. Some of the leaves which were found lying nearby were either broken or cracked and became unfit for use. As a result of the blowing of large quantity of Beedi leaves in process, the complainants suffered loss to the extent of Rs. 52 lacs, Rs. 35 lacs and Rs. 40 lacs respectively for which claims were lodged with the Insurance Company. The Insurance Company initially appointed one G. Vasant Rao as the Loss Assessor and Surveyor who opined that no loss has been occasioned to the complainants, and thereafter appointed the second Surveyor Mrs. V. Laxmi Narsayya & Co. On joint inspections with Ms. Laxmi Narsayya & Co. and a certificate issued by the Forest Department, Government of Andhra Pradesh, the Loss Assessor made the assessment of net loss in the sum of Rs. 4,67,266, Rs. 55,913 and Rs. 1,20,691 respectively. Even that assessment was not accepted by the Insurance Company and lastly vide a communication dated 24.12.2001, the Insurance Company repudiated the claims of the complainants, inter alia on the ground that the complainants have misrepresented the facts and adopted fraudulent means to exaggerate their claims, which was clearly in violation of policy condition Nos. 1,6b, 7a, 7b, 7c, 7d and 8 of the terms and conditions of the Policy, besides several other grounds. Dissatisfied with the repudiation of their claims, the complainants have filed the present complaints claiming the following reliefs:

(2.) Being noticed on the complaints, the Opposite Party/Insurance Company contested the claim by filing written versions raising preliminary objections about the maintainability of the present complaints, almost on the same grounds on which it had already repudiated the claim of the complainants. On merits, it is not denied that above referred Fire insurance policies were issued to the complainants having the coverage of the above perils but it is specifically denied that any loss of Beedi leaves occasioned to the complainants was on account of the alleged blowing of huge quantity of Beedi leaves due to high speed winds as was claimed on the date of the peril. Liability to pay any compensation much less the amount claimed by the complainants in the complaints is denied.

(3.) In the rejoinder the complainants have controverted the objections and pleas raised by the opposite party in their written versions and have generally reiterated the averments and allegations already made in the complaints.