NATIONAL INSURANCE CO LTD Vs. VENUS ENGINEERING

JUDGEMENT

(1.) National Insurance Company challenges order of District Forum, Amritsar dated December 24, 1996. In this appeal, a direction was given to the appellant- Insurance Company to pay Rs.1,80,304/- with interest @ 15% p. a. from the date of submission of the claim till payment. A sum of Rs.1000/- was ordered to be paid towards costs to the complainant-Venus Engineering W/s Co- operative Industrial Society, Amritsar.

(2.) The complainant had taken an insurance policy from the Insurance Company on December 9, 1991. The same was valid upto December 9, 1992. All the stocks in the factory premises of the complainant such as wood, screw and rivets, raw material of B wire, cutting oil and such like other goods for a sum of Rs.3 lacs. Sometime earlier, the terrorists visited the factory and demanded shelter for the night. The management as well as the Watchman Tilak Raj declined the request. Tilak Raj was further instructed not to open the factory door for any unidentified person. Thereafter on January 15,1992, a letter was also received on the letter pad of Khalisthan Liberation Force, threatening the complainant to closedown the factory and to give cooperation. On March 23, 1992, some terrorists visited the factory premises and fired shots. Hence factory was closed. On September 14,1992, few terrorists again visited the factory premises and fired shots, threatening Tilak Raj, Chowkidar from whom whereabouts of owner of the factory were being sought. Tilak Raj is stated to have left in panic after locking the factory. On September 23,1992, Jagtar Singh of the complainant-Society visited the factory premises and came to know that on the night of 14th and 15th September, 1992, a theft had taken place in the factory premises. Hence he lodged the report at the Police Station Sultanwind under Sections 457 and 380, 1pc. The complainant lodged the claim with the Insurance Company. Since the Insurance Company filed the claim as "no Claim", the District Forum was approached. In the meantime, their representation to the Insurance Company did not bear any fruit. The Insurance Company submitted its version alleging therein that the claim was rightly repudiated being false and not maintainable under the terms and conditions of the policy as the factory premises remained unguarded day and night for a period of more than seven days. Both the parties led their evidence on affidavits and documents. The Insurance Company also produced copy of Surveyor's report wherein loss was assessed at Rs.1,80,304/-.

(3.) The contention of learned Counsel for the Insurance Company is that the case was fully covered under the exclusion clause contained in the insurance policy, which reads as under : exclusions: "this policy shall cease to attach: viii (a) If the premises shall have been left uninhabited by day and night for seven or more consecutive days and nights while the premises are left uninhabited. (b) If the insured shall cause or suffer any material alteration to be made in the premises or anything to be done whereby the risk is increased. (c) To any property the interest of the insured in which shall pass from the insured otherwise than by Will or operation of law. Unless in every case the consent of the Company to the continuance of the insurance thereon is obtained and signified on the policy".