NATIONAL INSURANCE CO LTD Vs. JEET ENGINEERING WORKS

JUDGEMENT

(1.) The respondent proprietor, M/s. Jeet Engineering Works was the complainant before the District Forum. He had taken comprehensive insurance, for his company with the National Insurance Company for Rs. 2,00,000 valid from 2.9.1996 to 1.9.1997. It is his say that due to heavy rainfall on the intervening night of 31.8.1997 and 1.9.1997 his workshop was flooded and accordingly he informed Insurance Company about flood on 3.9.2007 and requested them to send a Surveyor. The complainant spent Rs. 36,000 for repairing the damaged machinery which was not paid by the Insurance Company. Accordingly, he filed a complaint before the District Forum to direct the respondent - Insurance Company to refund Rs. 36,000 towards expenses incurred on repair of motors, Rs. 20,000 towards mental and physical harassment as compensation and Rs. 200 as costs making a total of Rs. 56,200 with 18% interest since the date of incident along with costs.

(2.) The Insurance Company appointed Mr. K.K. Agarwal as Surveyor. Though the complainant has stated in his affidavit that he has insured his industry under fire policy "A", the Insurance Company stated that only the fire police "C" was issued. It is the contention of the complainant that as his is a small scale industry the Insurance Company should have issued fire policy "A" without exclusion clause for flood etc. The District Forum after going through the record and hearing the parties directed the Insurance Company to pay Rs. 32,400 towards repairs of the machinery within 30 days of its decision along with Rs. 200 as costs.

(3.) Aggrieved by the order of the District Forum the National Insurance Company has filed an appeal. The State Commission after hearing the Counsel for the parties held that "the question which type of policy for Small Scale Industry ought to have been issued was considered by this Commission in National Insurance Co. Ltd. v. Kiran Plastic Works, Appeal No. 1122/98, decided on 14.2.2001". In the above cited case the State Commission held that the Tariff Advisory Committee instructions are binding on the Insurance Company. According to the State Commission a bare look at the Tariff Advisory Committee it is clear that only fire policy "A" had to be issued under Section 2 of the Tariffs even if the insured insisted for taking a wider policy "C", as former covers various risks including the flood.