HIND CONSTRUCTION CO Vs. NATIONAL INSURANCE COMPANY LTD

JUDGEMENT

(1.) In view of the consensual relief being accorded hereinafter to the parties it seems unnecessary to delve deeply into the facts. It suffices to mention that the complainant firm M/s. Hind Construction Company had taken out insurance fire policy 'c' of the National Insurance Company for their premises, machinery, and stock etc. lying at their premises to the extent of Rs.7,40,000/-. The risk covered included damage by flood or rains and it is their case that on the 9th of September, 1990 there was heavy rain at Ambala which resulted in a loss of Rs.2,37,961.25p due to building collapse and damage to office and store block machinery and stocks. The matter was reported to the insuring company who appointed surveyors to assess the loss. But thereafter it is the allegation that there was gross delay in the settlement of the claim and consequently the relief for the payment of the claim of the aforementioned amount of money together with interest @ 18% annum from 9th of September, 1990 was sought.

(2.) In the written statement on behalf of the National Insurance Company the factum of the insurance policy having been taken out was admitted and further that on the receipt of the information about the flood and damage M/s. Kumar Raj and Associates surveyors and chartered accountants were appointed to assess the loss. The said surveyor vide their report dated the 4th of March, 1991 (Annexure R-l to the written statement) assesses the loss to the tune of Rs.20,768/- only. According to the opposite party the complainant was required to sent a flood certificate from the office of the Deputy Commissioner, but he only submitted a certificate from the Municipal Commissioner, Ambala. Consequently because of the absence of the submission of the flood certificate from the district authorities the claim was treated as no claim and the file of the complainant was closed. In any case, it was the stand that the liability of the Insurance Company could not be beyond the assessed loss by the surveyor to the tune of Rs.20,768/-.

(3.) The complaint was seriously contested on behalf of the opposite party and the complainants apart from the documents relied upon (the authenticity of which was not disputed) adduced the evidence of Shri Arunesh Agarwal, Shri Dinesh Kant Jindal and Shri R. R. Sharma in support of their case. All these deponents were cross-examined at considerable length on behalf of the opposite party.