ORIENTAL INSURANCE CO LTD Vs. M L BHAT

JUDGEMENT

(1.) Both the appeals mentioned in the above title are directed against the same order dated 6.5.96 of District Forum-I and these are being disposed of together.

(2.) Shri M. L. Bhat and his brother Shri P. K. Bhat, hereinafter referred to as the complainants, obtained a house-holders insurance policy for Rs.3 lakhs on 2.7.91 from Batwara, Shri Nagar Branch of Oriental Insurance Company Limited, (opposite party for short ). The policy covered risk against burglary, fire and theft. Burglary took place in the house on 2.6.92 regarding which FIR was lodged at P. S. Pulwama the same day. The complainants filed their claim with the Insurance Company. The Company deputed Mr. M. K. Wali as Surveyor. The complainants furnished various documents required by the Surveyor on 18.6.92. The opposite party, however, failed to settle the claim. Two letters were written by the complainants on 13.12.93 and 22.3.94. The Insurance Company informed the complainants on 11.4.94 that claim amounting to Rs.1,54,386/-had been approved. A cheque for the said amount was sent by the Insurance Company to the complainants on 15.4.94 which was received by the complainants under protest. The grievance of the complainants was that the amount insured under the policy had been arbitrarily reduced and even the reduced amount had been given after more than 22 months of the occurrence of the loss. The complainants filed a complaint before District Forum-I on 18.5.94 claiming the amount which had been reduced by the Insurance Company, interest @ 19% p. a. and compensation in addition to the payment of interest. The case was contested. On a consideration of the material before it the District Forum Held that case to be one of deficiency in service on the part of the Insurance Company, found no justification for reducing the amount by 40% on account of alleged depreciation and, accordingly, directed the Insurance Company to pay the balance 40% amount alongwith interest @18% p. a. from 2.8.92 to 15.4.94 and further interest at the same rate on the balance amount for the period 2.8.92 till the date of payment besides Rs.500/-as costs. Hence these appeals.

(3.) We have heard Mr. N. L. Nandwani, Advocate for the Insurance Company and Mr. Ramesh Bhandari, Advocate for the complainants and have gone through the records.