KONA MOHAN RAO Vs. NEW INDIA ASSURANCE LTD

JUDGEMENT

(1.) The petitioner / complainant purchased a godown erected on Plot No. 93 in Khata No.8/58 of Mouza in Rayagada and he claims to have got the said godown insured with the respondent New India Assurance Co. Ltd. on 09.8.2006 for the insured value of Rs.10.00 lacs. The premium amounting to Rs.3,592/- was paid by him to the insurance company on 09.8.2006. The building of the aforesaid godown having collapsed on 17.7.2006 and 18.8.2006, due to heavy rains, he lodged a complaint with the insurance company. Vide letter dated 24.8.2006, the insurance company informed the complainant that since no-one from their office had verified his godown before insurance, he should inform them as to who had inspected the said building. The complainant informed the insurance company that the godown was seen by a Development Officer, along with him and thereafter, the premium was deposited in the office of the insurance company. The aforesaid letter was followed by correspondence exchanged between the parties, but the claim was not paid by the insurance company. Being aggrieved, the complainant approached the concerned District Forum by way of a complaint, seeking payment of the insured amount of Rs.10.00 lacs, along with interest and cost of litigation amounting to Rs.50,000/-.

(2.) Though, the complainant / petitioner has not filed a copy of the reply submitted by the insurance company, a perusal of the order passed by the District Forum would show that the insurance company stated in its reply that since the proposal for taking insurance cover was not submitted with clarity and was not accompanied by documents, it was not accepted by the Divisional Office. As regards the premium, it was stated in the reply that it was accepted in routine. The insurance company maintained that no insurance policy having been issued to the complainant, the contract of insurance did not come into operation. It was also claimed by the insurance company that the complainant had suppressed material facts in the proposal submitted by him.

(3.) Vide order dated 28.11.2008, the District Forum dismissed the complaint holding that there was no valid contract of insurance between the parties.