NATIONAL INSURANCE CO. LTD. Vs. PARIVAR CONSTRUCTION

JUDGEMENT

(1.) This appeal has been filed by the National Insurance Co. Ltd under section 19 of the Consumer Protection Act, 1986 against the order dated 21.11.2008 passed by the Andhra Pradesh State Consumer Disputes Redressal Commission, (hereinafter referred to as 'State Commission') by which order the State Commission partly allowed the complaint filed by respondent no. 1 / complainant, M/s. Parivar Constructions, Secunderabad and ordered the appellant Insurance Company to pay a sum of Rs.19,20,605/- with interest @9% p.a. from 29.11.2005 till the date of realization with cost of Rs.10,000/-. The complaint against the respondent no. 2 / Indian Overseas Bank, Hyderabad was ordered to be dismissed.

(2.) There was a delay of 42 days in filing the present appeal but the same was condoned vide order dated 08.04.2009.

(3.) The facts, in brief, are that the complainant / respondent no. 1 obtained a term loan from respondent no. 2 Bank for purchase of Adj. Telescopic Span and Adj. Telescopic Prop equipment in order to use it for centering work of building construction. The said equipment was covered under an insurance policy dated 2.08.2004 for a sum of Rs.56,81,000/-, covering the period from 2.08.2004 to 01.08.2005. The said instrument was shifted to Banjara Hills in Hyderabad, where it was badly damaged due to heavy gale and wind on 29.06.2005. The complainant lodged a claim with the appellant insurance company for a sum of Rs.21,12,705/-. A surveyor was appointed by the Insurance Company who assessed the loss at Rs.19,20,605/-, but the claim was repudiated by the insurance company on the ground that the insured property was not situated at the place mentioned in the policy schedule at the time of accident / loss and hence it was not covered under the terms of the policy. The complainant filed a complaint before the State Commission for the recovery of Rs.19,20,605/- with interest @18% p.a. besides compensation of Rs.5 lakh and cost of Rs.25,000/-. The State Commission vide impugned order dated 21.11.2008 partly allowed the complaint directing the insurance company to pay a sum of Rs.19,20,605/- with interest @9% p.a. from 21.11.2005 till the date of realization with cost of Rs.10,000/-. The State Commission dismissed the complaint against the respondent no. 2, bank. Aggrieved by this order, the appellant insurance company has preferred the present appeal.