MANIK CHAND BOHRA Vs. NATIONAL INSURANCE CO LTD

JUDGEMENT

(1.) Complainant Manik Chand Bohra is proprietor of M/s. Tel and Pashu Aahar Udyog, located at B313, Road No.16, Vishwakarma Industrial Area, Jaipur wherein cattle feed under the brand name of "navneet Pashu Aahar" is manufactured. Under a Fire Policy "c" No.370106/3100075/91 dated 16.5.92 issued by the National Insurance Company Ltd. , Branch Office No.1, Church Road, Jaipur, apart from building and shed, insured stock like Khal, Binda, Churi, rice husk, Decoilla, Calca, rice bran oil cake, Bardana, Gur and similar type of items stored, in process and finished goods stored in open whilst situated/ lying at B-31, Road No.16, Vishwakarma Area, Jaipur occupied as factory cum godown. Complainant had paid a total amount of Rs 14,811 /- as premium and the period of insurance was from 23.5.91 to 22.5.92. In the above total amount of premium of Rs.14,811/- amounts of Rs.180/- and Rs.250/- as premium were also included and paid by the complainant for loss arising from spontaneous combustion of the property insured.

(2.) It is alleged that on 3.3.92 it came to the notice of the complainant that insured raw material i. e. de-oiled rice bran, which was stored in godown and in open, was by spontaneous combustion burnt and was damaged. The complainant immediately informed the Insurance Company about this damage and loss. According to the complainant, 1622 bags containing deoiled rice bran each weighing 60 kgs. lying in godown and 1462 bags each weighing 60 kgs. lying in open were damaged. Complainant submitted claim Annexure-2 to the Insurance Company mentioning total actual loss to the extent of Rs.2,51,654.40 of the raw material damaged. Opposite party No.2 had appointed P. S. D. and Associates as Surveyor. Shri Prakash Sharma, who was Chartered Accountant and Surveyor and Loss Assessor of the Insurance Company, after due survey, has already submitted his report to the Insurance Company to the effect that there has been a damage to the extent of Rs.2,51,564.40 to the complainant due to the above reason. However, the complainant received a registered letter dated 12.1.93 from opposite party No.2 (Annexure 4) whereby the Insurance Company repudiated the claim of the complainant that the claim made by the complainant is not covered within the scope of the insurance policy and that the de-oiled rice bran was not damaged by self-ignitrated fire, but by charring on account of process of time. It is alleged that the complainant was not given any opportunity of hearing before repudiation of his claim. According to the complainant, the Insurance Company has misconstrued the meaning of "spontaneous combustion". The complainant states that in a case of spontaneous combustion, it is not always necessary that there should arise flames during burning by spontaneous combustion. The complainant has also stated that he had himself seen that the de-oiled rice bran in the bags had turned red by fire and smoke was also rising up. The complainant has asserted that the opposite party Insurance Company has wrongly repudiated the claim of the complainant stating that the same was outside the scope of contract of insurance. It is stated that there was deficiency in service and negligence on the part of the Insurance Company. Complainant, with these averments, filed the present complainant on 18.3.93 in this State Commission and he has claimed the amount of Rs.2,51,654.40 on account of the actual loss suffered and has claimed interest at 18% per annum on the said amount with effect from 3.3.92 till payment. Complainant has further claimed Rs.1 lakh as compensation for economic loss, inconvenience and harrassment etc. caused to him also costs of the complaint.

(3.) The opposite parties filed their version wherein they have stated that it was clear from the report of M/s. P. S. D. and Associates, Surveyor and Loss Assessor dated 12.5.92 that the goods in the bags had turned black on account of deterioration and melting in the bags. No flames of fire had arisen. According to the opposite parties that under the policy risk of loss arising from fermentation, natural heating or spontaneous combustion is not covered. What is covered by the policy is the loss owing to fire caused by its own fermentation, natural heating or spontaneous combustion. The opposite parties state that there was neither any fire and nor flames had risen out of fire on 3.3.92 from the burning of the insured goods. The Insurance Company had rightly repudiated the claim of the complainant on the ground that the loss was not covered under the policy. It is denied that the Surveyor and Loss Assessor had assessed the actual loss at Rs.2,51,654.40. According to the Surveyor, had the claim been covered within the scope of policy, an amount of Rs.2,07,402/- would have been payable to the complainant. It is also said that the complainant had stocked one bag of deoiled rice bran over the other and had not taken any security steps to avoid spontaneous combustion. The bags which were placed at the bottom had turned into black owing to deterioration and melting. Thus, the opposite parties have denied the claim of the complainant.