RAM CHANDER Vs. SBI GENERAL INSURANCE COMPANY LTD.

JUDGEMENT

(1.) This appeal has been filed under Sec. 19 of the Consumer Protection Act, 1986 in challenge to the Order dtd. 1/10/2018 of the State Commission in complaint no. 938 of 2017 whereby the complaint was allowed against Municipal Council Bhawanigarh, District Sangrur (Punjab) and the same was dismissed against the SBI General Insurance Company Ltd.

(2.) We have heard the learned counsel for the appellant (hereinafter referred to as the 'complainant') and the learned counsel for the respondent no. 1 (hereinafter referred to as the 'insurance company') and learned counsel for the Municipal Council, Bhawanigarh, District Sangrur (hereinafter referred to as the 'municipal council') and perused the impugned Order of the State Commission and the memorandum of appeal. The respondent no. 3, the State Bank of India (hereinafter referred to as the 'bank') was proceeded against ex parte vide Order dtd. 29/11/2022.

(3.) The brief facts of the case are that the complainant purchased an old house and plot of total 210 sq. yds. vide sale deed no. 1857 and 1858 dtd. 5/2/2015 along with water connection for his own residence. He deposited the fee for approval of site plan for the construction of his house with municipal council and the site plan was approved on 2/3/2015. He deposited another fee for approval of site plan of 1st floor with municipal council and the site plan was approved on 12/5/2017. Thereafter, he approached the bank for sanctioning of house loan and it valued his property to the tune of Rs.27,90,000.00 and it sanctioned the loan of Rs.13,00,000.00 and released the first installment of Rs.3,90,000.00 to him. The bank got insured complainant's house from the insurance company for sum insured of Rs.24,00,000.00 covering all the risk of the house. The policy was issued in the name of the complainant. It is alleged that the complainant spent Rs.35,00,000.00 on construction work and after completion of construction work, he shifted in the said house. He noticed some cracks in the walls as well as in the ceiling of the house. It is further averred that in the first week of April 2017, the walls and one portion of floor of his house suddenly started to subside in a very fast way and whole building developed the big cracks and all the doors became jammed. He immediately called the mason and he also intimated the bank regarding the loss to his house and the bank further informed the insurance company. The insurance company appointed a surveyor, who visited the house and assessed the loss. The insurance company informed the complainant that the loss was not covered under the policy. The complainant again called the mason and the floor was excavated and it was found that there was a pool of water and then informed the municipal council. On information, the officials of the municipal council excavated the common street and found that the main water pipeline of the municipal council was damaged due to bursting of pipes and due to which there was free flowing of water. The said water pipeline was damaged accidentally or due to over-flowing of water in pipes or due to negligence of the officials of the municipal council. The complainant had written a letter to the municipal council and requested to pay the claim amount against loss. The complainant again intimated the insurance company the reason for loss caused to his house and then the insurance company appointed a surveyor, who visited the premises of the complainant and again took the photographs. The complainant got the tentative estimate for repair of the house from Er. Hanish Gupta, who prepared the estimate to the tune of Rs.27,34,000.00 for re-construction of the building by giving opinion that house was no more safe for human habitation and it should be reconstructed. The complainant submitted all the documents to the surveyor of the insurance company vide letter dtd. 27/4/2017. He also wrote letter to SDM Bhawanigarh and Deputy Commissioner, Sangrur for redressing his grievances regarding the loss suffered by him. He also sent reminder in this regard but no avail. Thereafter, the complainant moved an application under Right to Information Act, 2005 for knowing the status of his application dtd. 11/5/2017 followed by another reminder dtd. 5/7/2017. The claim was repudiated by the insurance company on 21/8/2017 on the ground that the loss was not covered under the policy. He immediately approached the bank and requested for settlement of his claim but it refused to entertain his request. He further approached the municipal council informing that his claim has been repudiated by insurance company and refused to pay any claim amount. It is alleged that the house is unfit for human habitation and might fall at any time due to its bad condition and cracks as well as subsidence of foundation and floors but he has no money to reconstruct the house.