NATIONAL INSURANCE CO. LTD. SURI BRANCH OFFICE, P.S. BRIBHUM, Vs. ABHOY SHANKAR TEWARI & ANR. DIRECTOR OF INDIA JYOTI RICE MILLS PVT. LTD., SRINIKETAN ROAD, BOLPUR, BIRBHUM

JUDGEMENT

(1.) Challenge in this Revision Petition under Sec. 21(b) of the Consumer Protection Act, 1986 (for short "the Act") is to the order dated 28.11.2014 passed by the State Consumer Disputes Redressal Commission at West Bengal (for short "the State Commission"), in FA No. 914 of 2013. By the impugned order, the State Commission has allowed the Appeal preferred by the Complainants and set aside the order of the District Forum, directing the Opposite Party Insurance Company to pay a sum of Rs. 4,26,208.00 within 45 days along with interest @ 9% p.a. from the date of first correspondence by the Complainants in this regard i.e. 28.12.2011, till full and final settlement of the claim.

(2.) The facts material to the case are that the Complainants took a Standard Fire and Special Perils Policy from the Opposite Party on 07.12009 for an amount of Rs. 00 crores covering the period from 07.12009 to 06.12010. It was stated that on 26.04.2010, because of violent storm and rains, stocks kept in the go-down of the Complainants' rice mill suffered severe damage, for which, the Complainants submitted an insurance claim to the Opposite Party on 30.04.2010. A Surveyor was appointed who submitted his report on 11.03.2011, computing the loss on two methods, one as per Standard Fire & Perils Policy and the other as per Declaration Policy. In the case of the former, the loss was assessed at Rs. 40,86,017/-, while in the case of the latter, the loss was assessed at Rs. 36,88,996/-. It was alleged by the Complainants that they were covered under the Standard Fire & Perils Policy, but the Opposite Party allowed only Rs. 36,59,809.00 which was neither in accordance with the actual policy nor in tune with the survey assessment report. It was averred by the Complainants that they had never taken the Declaration Policy and that the Opposite Party had arbitrarily deducted the amount and paid under the Declaration Clause and deviated from the policy conditions. It was pleaded that as the Complainants were under financial constraints, the said amount was accepted under protest. Hence the Complaint seeking directions to the Opposite Party to pay a sum of Rs. 4,26,208.00 with compensation and costs.

(3.) The Opposite Party filed their written version stating that the said Policy was issued under "Monthly Highest Declaration" basis against the stocks of the Insured and the Surveyor assessed the loss, accordingly. It was averred that the insurance is a contract of utmost good faith which is governed as per Indian Contract Act and if there is any misstatement or non-disclosure of material fact, the insurer is at liberty to declare the contract as void. It was also pleaded that the entire amount was received by the Complainants in full and final satisfaction without protest and after signing the discharge voucher the Complainants are estopped from raising a fresh claim.