NATIONAL INSURANCE COMPANY LIMITED Vs. SHIVAM MEDICO

JUDGEMENT

(1.) This appeal has been filed under Sec. 19 of the Consumer Protection Act, 1986 in challenge to the Order dtd. 25/10/2013 of the State Commission in complaint no. 54 of 2010, whereby the complaint of the complainant was partially allowed and the opposite party insurance company was directed to pay the amount of Rs.35,49,412.00 along with 9% interest from 18/10/2008 till relealisation and Rs.50,000.00 towards compensation and Rs.25,000.00 towards cost of litigation.

(2.) We have heard the learned counsel for the appellant (hereinafter referred to as the 'insurance company' and the learned counsel for the respondent (hereinafter referred to as the 'complainant') and perused the record including the State Commission's impugned Order dtd. 25/10/2013 and the memorandum of appeal.

(3.) The brief facts of the case are that the complainant, through its proprietor, is the wholesale distributor of medicines, surgical items and drugs, and had taken a godown on rent situated at 2/24-25, Martui Estate on Halol - Baroda Highway near Golden Chokdi. The complainant had obtained the insurance policy, namely, Standard Fire and Special Perils Insurance Pollicy, for the material kept for a sum insured of Rs.40.00 lakh. The policy was valid from 12/10/2007 to 11/12/2008. During the subsistence of the insurance policy, on 14/4/2008 a fire broke out in the godown and the medicines kept in the godown had become useless for human and animal consumption and the complainant had suffered a huge loss. The complainant informed the insurance company about the incident. The insurance company appointed a surveyor. The surveyor visited the godown on 17/4/2008 but had not assessed the loss. Several requests were made by the proprietor of the complainant. When the surveyor appointed by the insurance company had not assessed the loss, the complainant had appointed stock assessment surveyor approved by his C.A. and the total stock was shown at Rs.35,49,412.17p. It is concluded that stock worth of Rs.20,03,292.41p. was not in the physical condition to be counted and the damaged stock of Rs.11,70,186.29p was physically counted. The complainant made application to Assistant Commissioner, Food and Drug Controller Administration, Vadodara for assessing the stock not fit for human consumption and to destroy the same. After the stock assessment, the drug inspector destroyed the stock in the presence of the surveyor and had issued a certificate to that effect to the complainant on 10/2/2010. After a period of two years, the insurance company had approved Rs.15,56,271.00 on 20/4/2010 and had asked the complainant to accept the said amount as full and final settlement against the claim of Rs.42,14,162.00 towards the amount of total damage. It is contended by the complainant that the calculation of the stock which was completely burnt and damaged was not assessed on the basis of pro-rata basis but on the basis of calculation of area. The surveyor had opined to pay the compensation to the complainant approving the same without considering the C.A. approved stock statement. The complainant submitted an application under RTI Act, 2005 and through the reply it came to the knowledge of the complainant that the surveyor has submitted its report on 16/3/2010 i.e. after almost two years of the incident and that the surveyor in his report has accepted all the purchase bills as genuine except bills of Bhivandi. It is the say of the complainant that the surveyor has not considered the certificate issued by the Assistant Commissioner food and Drug Control Administration, Vadodara despite the fact that the surveyor was present when the Drug Inspector was inspecting the damaged stock and destroyed the same.