NEW INDIA ASSURANCE CO. LTD. Vs. CARPET EMPORIUM

JUDGEMENT

(1.) This Revision Petition under Sec. 21(b) of the Consumer Protection Act, 1986 challenges the order dated 16.5.2016 passed by Punjab State Consumer Disputes Redressal Commission, Chandigarh (State Commission) in First Appeal No. 1512 of 2012 by the petitioner-Insurance Company.

(2.) Salient facts as per the respondent/ complainant are that the Company had purchased a Burglary Floater Policy from the petitioner-Insurance Company for the period 9.10.2008 to 8.10.2009. In this, the sum insured for stocks was Rs. 1 crore. The company's stocks were held in six locations, one of which, located near DPS, adjoining Bhagat Ford Showroom, G.T. Road, Jalandhar, suffered extensive damages on account of arson and looting on 25.5.2009. Jalandhar was the epicenter of large scale mob violence, and the city was placed under curfew for more than a week. On 25.5.2009, the violence was its peak and large scale looting, fire and arson was reported on National Highway No. 1, where the subject godown was situated. The godown of the respondent suffered serious damage and all stocks lying in the said godown was either looted or burnt. The matter was immediately reported to the fire department but the fire brigade could not reach the place of occurrence. The matter was reported to the police on 27.5.2009 when the curfew was relaxed, and this complaint was included in an FIR dated 25.5.2009 which had already been registered by the police, following the riots and arson. According to the respondent's estimate, goods worth Rs. 10,55,040 were burnt and goods amounting to Rs. 5,78,440 were looted away. This break up was furnished to the petitioner-opposite party-Insurance Company as insurance claim; however, after much lapse of time in which the petitioner/opposite party asked for details and documents all of which were duly supplied. It finally offered the respondent Rs. 3,10,805, and sought its consent as welt as an 'untraceable' certificate by Illaqua magistrate, for this amount, in full and final settlement. This claim offer was not accepted and a consumer complaint was duly filed before the District Forum, seeking an amount of Rs. 16,33,480 (Rs. 10,55,040 for burnt stock and Rs. 5,78,040 for looted stock) and Rs. 1 lakh for damages.

(3.) The petitioner/opposite party, in reply before the District Forum, submitted that immediately on receipt of information about the loss caused to the complainant on account of mob violence, a surveyor was appointed who submitted its report on 15.3.2010, and assessed the loss at Rs. 3,10,850. Further, M/s. National Detective and Consultancy Services, who were appointed to investigate the claim, in their report dated 22.1.2010, concluded that the mob put fire to the store of the respondent/ complainant and in the fire few goods lying in the store got burned. Thereafter, based on the survey report, an amount of Rs. 3,10,850 was offered to the complainant. Since the complainant failed to provide the 'untraceable report' and his consent to the offer, despite reminders, the case was closed as 'no claim', and the complainant duly informed vide letter dated 6.5.2011. There being thus no deficiency in service, the petitioner/opposite party argued that the complaint deserved to be dismissed with cost.