JAGDAMBA INDUSTRIES Vs. NATIONAL INSURANCE COMPANY LIMITED

JUDGEMENT

(1.) The complaint filed by M/s. Jagdamba Industries against National Insurance Company having been dismissed by the District Forum, Gurdaspur vide order dated February 18, 1997 the present appeal has been filed by the complainant challenging the same. During arguments, it was noticed that the first Surveyor appointed by the National Insurance Company, Mr. Sanjeev Mahajan had submitted a report assessing the loss, however, the same was not produced before the District Forum. The same was got produced as it was considered necessary for proper adjudication of the case to have it on the record.

(2.) The complainant firm had taken an Insurance Policy from the National Insurance Company covering risk of raw material, finished goods and the factory. On the night of May 1, 1993, fire occurred in the factory with the result was lodged with the Insurance Company. Subsequently the claim was repudiated that the District Forum was approached. The Insurance Company took up the plea that the repudiation of the claim was based on the report of an Investigator appointed who reported that there was no fire and no loss. Parties produced their evidence on affidavits and documents on the basis of which the impugned order was passed. The District Forum referred to different grounds as considered by the Investigator to decline the relief holding that there was evidence before the Insurance Company on the basis of which bona fide decision was taken to repudiate the claim and there was no deficiency in rendering service and, thus, the complaint was dismissed.

(3.) The practice of appointment of Surveyors one after the other till the one makes report favourable to the Insurance Company has been deprecated by the Courts. In the present case, as already stated above, Sanjeev Mahajan, Surveyor was appointed by the Insurance Company on receipt of the claim. We have perused the aforesaid report which is a detailed one holding that the fire took place on account of short circuit and on the basis of relevant records produced by the complainant firm, the existing stock, raw material as well as finished goods were verified viz-a-viz such documents of the Bank from whom cash credit limit had been taken and finally keeping in view the existing stocks which were not affected and on the basis of stocks which were damaged loss was assessed at Rs.62,614/-. This report is dated 24.6.1996 : On receipt of this report, straightaway it was expected of the Insurance Company to settle the claim and if the report was not acceptable, to repudiate the claim. However, the Insurance Company without doing anything as above, proceeded to appoint another person Mr. Chabra as Investigator. He differed with the report of M/s. S. Mahajan and Associates as referred