NISSAN ENTERPRISES LTD. Vs. NATIONAL INSURANCE COMPANY .LTD

JUDGEMENT

(1.) The complainant is in the business of trading in electronic items such as cell phones, electronic component accessories of mobile phones, I-pods, cameras, gaming devices, computers and other audio video consumer electronics. The complainant stored its stocks at a warehouse in Bhiwandi in Building No. I/12, Gala 8, 9 & 10, Shri Arihant Compound, Kalher, Bhiwandi, Thane. The stocks stored in the said premises were insured with the opposite party National Insurance Co. Ltd. under a Floater Policy for a period 18/4/2013 to 17/4/2014 for an insured sum of Rs.5,00,00,000.00.

(2.) It is alleged that at midnight around 12:30/12.45 a.m. in the early morning hours of 03/4/7/2014, after heavy rains and water-logging, the building collapsed. Several people were injured and some also lost their lives in the said collapse. According to the complainant, the insurance policy covered the entire risk of stocks and accordingly the intimation was given to all concerned, including the Insurance Company, about the said accident. One of the grounds taken in this complaint is that the Insurance Company kept the matter pending for no valid reason and that the surveyor report was submitted belatedly. Not only this, the claim was also repudiated after the filing of the present complaint and the repudiation letter was brought-forth through the written version of the opposite party. The contention is that the Insurance Company has violated its obligations and so has the surveyor which amounts to breach of the regulations of the Insurance Regulatory and Development Authority (Protection of Policyholders' Interests) Regulations, 2002.

(3.) The information was also followed by a claim form that was tendered intimating the cause of incident and losses suffered. A request was made for appointment of a surveyor. The Insurance Company in turn on 5/7/2013 called upon Mr. Atul C. Shah to conduct a preliminary survey of the said loss and to submit his report with the photographs at the earliest. The request was to carry out the survey immediately and provide the feedback accordingly. Mr. Shah vide letter dtd. 8/7/2013 intimated the complainant that they visited the premises on 6/7/2013 and inspected the building, the stock available and discussed the matter with the insured. Through the said letter, the surveyor asked for 24 documents, including the documents relating to the building. The said letter records that the complainant had intimated the cause of collapse of the building due to subsidence. The said word in ordinary parlance means the sedimentation or precipitation and, more particularly in relation to solid or heavy things, the settling thereof to the bottom. It also connotes sinking to lower levels and in short a fall in the level of ground. It can be gradual or sudden due to dynamic and variety of causes.