NATIONAL INSURANCE CO. LTD. Vs. SAJAN KUMAR AGARWAL

JUDGEMENT

(1.) AGGRIEVED and dissatisfied by the order of the Chhattisgarh Consumer Disputes Redressal Commission, Raipur dated 28.10.2004, in Complaint Case No. 6 of 2003, the National Insurance Company Ltd. has filed this appeal. The State Commission had allowed the complaint and directed the opposite party -the Insurance Company to pay to the complainant Rs. 6,78,650 (Rupees Six lakh seventy eight thousand and six hundred fifty only) as compensation with interest @ 9% per annum from the date of the complaint along with Rs. 5,000 as cost.

(2.) COMPLAINANT Mr. S.K. Agarwal, proprietor of M/s. Sanjay Enterprises is purchasing Bidi leaves from Government of Maharashtra. He had obtained a contract through tender for collection of Bidi leaves for the year 1996 -97 which were to be collected from the forest units of Murmuri and Kadsi in Gadchiroli forest division. He had obtained special declaration insurance policy on 27.3.1997 covering risk of all types of Bidi leaves for a total value of Rs. 2 crores for the period 16.5.1996 to 15.5.1997. In the proposal form he had mentioned that Bidi leaves were to be collected from the interior forest area of Maharashtra, generally known in common parlance as fudh and they were to be brought to main godown at Village Sonadarh via various transhipment centres and then were to be despatched to various places all over India. On the intervening night of 30th and 31st May, 1996, while 150 bags of Bidi leaves were loaded in truck at Potegaon depot for transportation to complainant's godown at Sonadarh, some 6 -7 miscreants (Naxalites) armed with deadly weapons arrived at the depot and forcibly got the Bidi leaves unloaded from the truck and poured diesel over the bags of Bidi leaves and set them on fire, in the result, 360 gunny bags were destroyed. The matter was reported by the complainant's agent at Gadchiroli Police Station, on 1st June, 1998, upon which an offence was registered by the police. Complainant also informed the Insurance Company. The Insurance Company appointed Mr. Ashok Motiani, Surveyor, who assessed the loss at Rs. 6,70,656. Complainant submitted the claim, but the claim was repudiated by the Insurance Company vide their letter dated 13.7.1999 on untenable grounds. Accordingly, he prayed that compensation for the loss assessed by the Surveyor be awarded along with interest thereon.

(3.) THE complaint was resisted by the Insurance Company. The main contention raised by the Insurance Company was that the incident of arson when the bags were lying in the open field at the godown of the complainant and not during transit and, therefore, it is not covered by the Insurance Policy. The Insurance Company also raised the contention that the risk was covered by the policy subject to Clauses 18, 21 and 24 of the policy. Accordingly, the Insurance Company was not liable to pay any compensation. The State Commission after hearing the parties and going through the records of the case awarded compensation with interest and cost as stated above.