VENKATESWARA SYNDICATE Vs. ORIENTAL INSURANCE CO LTD

JUDGEMENT

(1.) The complainant is a registered partnership firm doing business in cotton. A fire accident took place in the godown of one Jay Bharat Traders leased by the complainant firm where his cotton stocks were stored at about 2.10 a.m., in the morning hours of 24.8.1999 and according to the complainant the loss was of Rs.1.90 crores. It is not disputed that the cotton stocks in question was covered by 7 insurance policies issued by the O.P., Oriental Insurance Company Limited for a total sum insured of Rs. 1.98 crores during the period when the fire accident took place. An FIR was filed with the police on the day of the fire itself and a claim was made on the Insurance Company.

(2.) It is alleged that the Insurance Company appointed an Insurance Surveyor, K. Shivaprasad, who gave a report on 9.9.1999 assessing the loss at Rs. 1,73,92,310/ -. Two more Surveyors, Mehta and Padamsey Surveyors Private Limited, Chennai and Eaypens from New Delhi who carried out a joint inspection gave a joint report on 15.11.1999 assessing the loss at Rs. 1,74,82,080.00. Yet another Investigator Shri P.N. Panchal was appointed on 17.5.2000 who in his report of 6.9.2000 also came to a conclusion that there was an accidental fire and the quantity of cotton lost is Rs.1,350.00 F.P. cotton bales and 88 boras of lint i.e., as claimed by the complainant. In spite of these and various reminders to settle the claim, the O.P. did not respond besides saying merely that the matter is under consideration. After failing to receive a reply to a legal notice dated 6.3.2001, the complainant approached this Commission on 9.5.2001 seeking settlement of the insurance claim and certain other reliefs as mentioned in the complaint.

(3.) During the course of the proceedings, O.P.-1 repudiated the claim of the complainant vide its letter dated 2.8.2002 on three grounds as mentioned below: