DIVISIONAL MANAGER Vs. NATIONAL INSURANCE CO. LTD.

JUDGEMENT

(1.) This case was filed on 29.05.2001, by the Divisional Manager, Himachal Pradesh State Forest Corporation. The Corporation in this case was established for commercial exploitation of the forest resources and produce in the State by adopting scientific methodology, keeping in view the ecological and environmental impact of such exploitation. Since the complainant Corporation deals with valuable forest produce, all steps and precautions are taken for proper care and safety of the stacks/stocks. In the process, the Divisional Manager, H.P. State Forest Corporation, obtained an insurance policy, under his control for Forest Working Division, Kullu. The National Insurance Co. Ltd, OP1, New India Assurance Co.Ltd., OP2, Oriental Insurance Co. Ltd., OP3, United India Insurance Co. Ltd., OP4, formed the consortium as Co-insurers and the National Insurance Co. Ltd., as their leader. The insurance cover/value was fixed at Rs.6,95,64,000/-. The complainant paid a premium of Rs.11,26,295/- . The Leader/Insurance Co. Ltd, viz., the National Insurance Co. Ltd, issued a Fire Insurance Policy, on 27.06.1998. The total risk was apportioned between the four subsidiaries, as per the following ratio, with National Insurance Co., as the Leader :- <FRM>JUDGEMENT_707_NCDRC_2013_1.html</FRM>

(2.) Unfortunately, a devastating fire took place in the forest, on 08.05.1999. The complainant informed the National Insurance Co. Ltd., Mandi, about the incident, telegraphically, on 11.05.1999 and by letter, dated 12.05.1999, about the said occurrence. A request was made to appoint a Surveyor. Police report was also lodged, on 11.05.1999. The complainant claimed a sum of Rs.38,58,940/-. Sh.Sumant Sud was appointed as a Surveyor. The Corporation extended full co-operation. On 16.06.1999, the National Insurance Company Ltd., on an approval from the competent authority, made an 'on account' part-payment of Rs.12,60,000/- to the complainant. Their letter further stated that the balance payment would be made as and when they received final claim from the Surveyor. Thereafter, the Branch Manager, National Insurance Co.Ltd., vide its letter dated 02.02.2000, informed that they had received the survey report which has been scrutinized and forwarded to the competent authority on 28.01.2000. When the matter could not be settled further, therefore, the present complaint was filed with the prayer that the Opposite parties be directed to pay the residue amount in the sum of Rs.25,98,940/-, with interest @ 18% p.a., with costs.

(3.) Opposite party Nos. 1 & 5, together, have listed the following defences in support of their case. It is contended that the complaint is not maintainable, without seeking the prior approval of high powered committee of the Cabinet Secretariat of Government of India. But this point was not contested. It is contended that the Opposite party has already made the full and final payment which was accepted by the complainant. It is explained that payment of Rs.12,60,000/- was originally paid by the Opposite parties on behalf of the consortium insurers in June, 1999. Again, as advised by the Surveyors, in their final survey and assessment report, the Opposite parties, vide their letter dated 08.08.2001, paid the balance amount of Rs.2,37,380/-, towards the full and final settlement of the complainant's fire claim. It is not out of place to mention here that during arguments, it transpired that the said amount was yet to be paid, by the Opposite parties to the complainant. Consequently, a total payment of Rs.14,91,380/- already stands paid to the complainant, as such, the present complaint deserves dismissal. It is averred that there is no deficiency on the part of the Opposite parties. It is contended that the disputed questions of facts are involved and it will not be proper for the consumer fora to adjudicate the same. This Commission having summary jurisdiction, cannot decide all these intricate questions.