UNITED INDIA INSURANCE CO LTD Vs. KALAVATHY

JUDGEMENT

(1.) In this first appeal filed against the order dated 12.12.2001 of Consumer Disputes Redressal Commission UT, Chandigarh the facts, in brief, are these. Respondent/complainant is having cloth business at SCO. 22-23, Sector 11-D, Chandigarh and the company purchased 'A' fire policy and shopkeepers' policy on 25.9.1998 from the appellant/opposite party. Sum assured of the fire policy was Rs. 25,00,000 while that of shopkeepers' policy Rs. 10,00,000 . It was alleged that the stocks of cloth lying in the premises was damaged during the currency of policy on 4.3.1999 on account of seepage/inundation resulting from the dripping of water from the water tank kept on the roof. There was massive water logging on the first floor which percolated to the ground floor of the premises. Loss to the stocks was in the vicinity of Rs. 15 to 20 lakh. Appellant was intimated of the incident through a letter dated 4.3.1999 by the respondent. Complaint seeking certain reliefs filed by the respondent was contested by the appellant. Though the issuance of two policies was not denied but it was alleged that the assessment of loss as made by M/s. Duggal, Gupta and Associates, Surveyor was of Rs. 1,60,477 . Claim was repudiated by the letter dated 2.6.2000 as the peril was not covered by the two policies.

(2.) Copy of fire policy is at pages 17 to 19 while that of shopkeepers' at pages 20 to 25. In former policy in Clause 7 under the heading 'Risk covered' it is stated: "Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation" Clauses (b) and (f) of Section 1-Building/contents of shopkeepers' policy read as under:

(3.) At this juncture, reference has to be made to the two letters dated 25.11.99 (copy at page 40) and 11.6.99 (copy at page 39). Contents of the letter dated 25.11.2006 which seems to have been sent in continuation of the letter dated 11.6.99 which are material, are reproduced below: