JK CEMENT WORKS Vs. ORIENTAL INSURANCE CO.LTD.

JUDGEMENT

(1.) The complainant M/s. J.K. Cement Works has filed this complaint against the opposite party, Oriental Insurance Co. Ltd., alleging deficiency in service on the part of the latter.

(2.) The basic facts of the case leading to filing the complaint are that the complainant had obtained an insurance cover from the opposite party for the stock of coal in the coal yard at its factory premises at Nimbahera (Rajasthan). The period of insurance was 20.11.02 to 19.11.03. It was the case of the complainant that on the night of 29th and 30th Aug. 2003, i.e., during the life of the policy, there was heavy rains resulting in damage to the coal as the coal stocks stacked in the premises of the factory was washed off from the factory premises, causing loss to the company. The matter was reported to the authorities as also the opposite party, who appointed a surveyor, who submitted its report on 29.3.04, assessing the loss Rs. 58,89,400. This was followed up by two further actions on the part. of the opposite parties firstly, they sought"certain clarifications from the surveyor, who sent replies confirming its assessment and secondly, they hired the services of a Chartered Accountant who allegedly could not give his report, on the premise, that sought for information was not made available by the complainant. It is in this background that the claim of the complainant was repudiated on 14.12.04 by the opposite party in following terms: Dear Sir, Re: Loss to coal Fire Declaration Stock, Claim No. 11/04/00010 under Policy No. 2003/001098, A/c M/s J.K. Cement at Nimbahera, Date of loss 29 -30.08.2003. With reference to the above, we regret to inform you that competent authority has repudiated your above claim on the ground that loss due to heavy rain does not fall under the scope of the Standard Fire and Special Peril Policy, as your loss occurred due to washing off of stock of coal due to heavy and extra -ordinary rain and not caused by flood or inundation. Although the policy covers the loss due to flood and inundation but above reported loss is neither caused by flood nor inundation, hence, not covered under the policy. Thus, we are constrained to inform you that the liability of the above claim stands repudiated which please note. We are extremely sorry for the inconvenience caused to you in this regard. Thanking you Yours faithfully

(3.) It is in these circumstances that this complaint has been filed before us with the following prayer: