CHANDMAL Vs. NEW INDIA ASSURANCE CO. LTD.

JUDGEMENT

(1.) The complainant/petitioner took an insurance policy from the respondent company in respect of the building of his firm namely Balaji Saw Mill and the stock kept in the premises of the said Mill. The total sum insured under the policy was Rs. 19,48,000.00 comprising building, plant & machinery, furniture, fixtures and fittings and stock of three categories. The petitioner had also obtained an insurance policy from Oriental Insurance Company Limited with respect to the stock kept in the Saw Mill.

(2.) In an incident of fire, which happened on 11.02.2009, the stock kept in the Saw Mill is alleged to have been destroyed/damaged. The building of the Saw Mill as well as the plant and machinery installed therein were also damaged in the said fire. The petitioner submitted a claim to Oriental Insurance Company Limited with respect to the stock of goods kept in the Saw Mill and received a sum of Rs. 3,74,100.00 in full and final settlement of his claim. He also gave intimation of the fire to the respondent New India Assurance Company Limited which, on receipt of the said intimation, but without being aware about the policy taken by the petitioner from Oriental Insurance Company Limited, appointed a surveyor to assess the loss. Initially, the petitioner did not cooperate with the surveyor and did not submit the requisite documents. However, after receiving the claim from Oriental Insurance Company Limited, he submitted documents to the surveyor, who, vide his report dated 31.03.2010, assessed the loss at Rs. 7,99,241.00 including Rs. 6,63,696/- for the loss of the stock. The report of the surveyor would show that the claim of the petitioner included a claim of Rs. 13,01,083.00 on account of the alleged loss of stock in trade.

(3.) The claim was eventually rejected by the insurer vide letter dated 26.08.2010 which to the extent, it is relevant, reads as under: