NEW INDIA ASSURANCE CO LTD Vs. PATITAPABAN KARAN

JUDGEMENT

(1.) The Cuttack District Forum by order dated 5.5.2004 made in C. D. Case No.231 of 2003 has directed the New India Assurance Company Limited to settle the claim of the complainant within three months from the date of receipt of the order. Being aggrieved by the aforesaid order the Insurance Company has filed C. D. Appeal No.385 of 2004. The complainant has filed C. D. Appeal No.30 of 2005 praying for a direction to the Insurance Company to make payment as per the claim laid in the complaint. Both the appeals being analogous they were taken up together for hearing and are disposed by this common order.

(2.) The case of the complainant is that he availed loan of Rs.1,69,000 on 5.2.1997 from the Cuttack Gramya Bank, Judum Branch for the purpose of pisciculture by excavating his tank. He started the project with the technical assistance of the Fishery Extension Officer. The pisciculture project tank was insured with the New India Assurance Company Limited for Rs.1,69,000. An amount of Rs.8,837 was paid as premium. During the period from 29.10.1999 to 1.11.1999 there was super cyclone in the costal Orissa which totally devastated the pisciculture project tank as a result there was heavy loss. The devastation took place during the subsistence of the policy. On being informed, the Branch Manager of the Cuttack Gramya Bank along with the Fishery Extension Officer conducted spot verification of the damaged tank and they assessed the loss at Rs.82,500. The Bank requested the Insurance Company to settle the claim. The Insurance Company instead of settling, repudiated it on the ground that there was "no total loss" and therefore the policy does not cover it. The Insurance Company filed written version contending inter alia that the complaint was barred by time and the policy does not cover the claim.

(3.) The Gramya Bank filed written version supporting the plea of the complainant.