NATIONAL INSURANCE CO. LTD. Vs. BLANNY C. DSOUZE

JUDGEMENT

(1.) THE complainant had insured stock -in -trade in his godown D.No. 2 -58 A.B.C. The stock -in -trade included Shamiyana, Pendal, furniture, fixtures, Tarpal, stage decoration articles, stage backdrop screen, plastic and steel articles, etc. for marriage and engagements and other functions for hire. During the currency of the policy, godown caught fire on 10.3.2006 at about 2.10 a.m. and the entire stock -in -trade inside the godown was totally destroyed. According to the complainant, he suffered a loss of Rs. 12,00,000. The petitioner/Insurance Company sent a voucher for Rs. 3,50,000 towards full and final settlement. The complainant had pressed for the entire claim, but he was threatened if he were to pursue his claim for the entire insured sum; even the claim, which was being paid, would be repudiated. According to the complainant, on account of his financial position, mounting loans, pressure of the private parties to repay the debts, he was compelled to sign that voucher without prejudice to his right to claim the entire claim amount.

(2.) THE complainant thus approached the District Forum. The District Forum on the basis of material on record found that the dispute was only with regard to the assessment made by the Surveyor. On perusal of the Survey Report, it was found that the Surveyor had made depreciation of 50% for some items, 60% for few items and 20% for only one item. The Surveyor considered the present replacement cost of stock -in -trade at Rs.7,85,003 minus salvage Rs. 10,000. After depreciation, he arrived at Rs. 3,72,379 as the present market value. On the question of depreciation, the Surveyor came to the conclusion that normal life of Shamiyana cloth material is about 4 years if well maintained and notwithstanding that such items have not much re -sale value, yet he has taken 50% depreciation for determining the market value. The District Forum also noted the term and condition of the policy as under:

(3.) HOWEVER , the District Forum held that in the absence of any depreciation clause in the policy, the Surveyor could not deduct 50% of depreciation of the amount under the present replacement cost. Therefore, the District Forum directed the opposite parties to pay the present replacement value of the stock -in -trade i.e. Rs. 7,85,003 without any depreciation by deducting the other standard deductions under the policy along with interest @ 8% per annum from the date of complaint till the date of payment with cost of Rs. 1,000. This order was challenged by the Insurance Company before the State Commission.