NATIONAL INSURANCE COMPANY LIMITED Vs. KABA ENTERPRISES

JUDGEMENT

(1.) This appeal, under Sec.15 of the Consumer Protection Act, 1986 is directed against the order dated 17th April, 2001 in Complaint No.343 of 1998 by District Consumer Disputes Redressal Forum, Durg, (hereinafter called the District Forum for short), whereby the complaint of the complainant/respondent was allowed and the appellants/insurers were directed to pay him Rs.1,56,254/- with proportionate freight charges of Rs.3,255/-, compensation of Rs.5,000/- as also cost of Rs.1,000/-.

(2.) The undisputed facts stated in brief are that the complainant-respondent herein obtained Transit Insurance Policies from appellant No.1 insurer. Appellant No.2 is the Divisional Office of appellant No.1 while appellant No.3 is its Head Office. The said Transit Policy covered risk for loss or damage to the consignment during transit. It is also not in dispute that a consignment consisting of packets of cigarrettes, kept in cartons was booked by the complainant/respondent, for transportation from Bhilai to Patna. The said consignment was damaged and rendered worthless, on account of heavy rains. The complainant/respondent, therefore, laid claim with the appellant for loss as above. The appellant's Surveyor assessed the loss of Rs.6,25,014/-. The appellant, however, deducted 25 percent from the amount as above on the ground of alleged non-recovery of salvage, and paid the respondent the balance amounting to Rs.4,51,686/- towards settlement of the claim of complainant/respondent.

(3.) The complainant in his complaint raised his grievances against the deduction of Rs.1,56,254/- being the 25% amount of total loss as estimated by the appellant's Surveyor, due to alleged non-recovery of salvage. It was averred by the complainant/respondent that the damaged goods was unloaded in the consignee's premises of M/s. Ganpati Traders, 92, Surya Apartments, Fraser Road, Patna. It was further averred that the opposite parties/appellants directed that the said stock of damaged goods be destroyed through their Surveyor M/s. Bhadra and Associates Pvt. Ltd. , Calcutta. Accordingly, the said Surveyor of the opposite parties has destroyed the salvage. The complainant, therefore, averred that since the salvage was handed over to the Insurers and as it was destroyed according to the appellant's instructions, therefore, the appellants were not entitled to deduct 25% from the amount of estimated loss by the Surveyor. The complainant, therefore, prayed that the opposite parties/appellants be directed to refund him the deducted amount of Rs.1,56,254/- with proportionate freight charges with interest as well as compensation and cost of the complaint.