SADGURU OIL MILLS Vs. NEW INDIA ASSURANCE COMPANY

JUDGEMENT

(1.) The complainant, which is a proprietorship concern of Smt. Meenakshi Namdeo Jadhav, obtained an insurance policy from the New India Assurance Company Ltd., for the period from 15.6.2011 to 14.6.2012 in respect of the manufacturing unit being run by her in Naigaon Deshmukh Village, District Buldhana of Maharashtra. The insurance policy covered building, plant and machinery, furniture as well as the stocks and stocks in process. The building was insured to the extent of Rs.15,00,000/-, whereas the stock and stock in process was insured to the extent of Rs.1,50,00,000/-. A fire allegedly broke out in the godown of the said unit on 12.5.2002, due to an electric short-circuit in the electric wiring of the godown, resulting in damage to the building as well as loss of /damage to the stock. Intimation having been given to the insurer, M/s. Ashok & Company were appointed as the surveyors. Another surveyor namely Mr. Robert Rodrigues was appointed by another insurer SBI General Insurance Company Ltd. Initially, the complainant estimated the loss at Rs.61,85,350/- which was later revised to Rs.1,42,87,130/-.

(2.) Considering the size of the godown the surveyor was of the opinion that the stock worth not more than Rs.60,35,330/- could have been stored in the said godown. He felt that the maximum quantity of the stock which could have been stored in the godown would be about 45% of the quantity claim by the insured.

(3.) The report of the surveyor, to the extent it is relevant, reads as under: