HARE RAMA TRADERS vs BRANCH MANAGER, NATIONAL INSURANCE CO.LTD.

THE case in brief is, M/s. Hare Ram Traders (hereinafter called the complainant) filed this case for the damage of his stock in the godown worth Rs. 2,60,000/- due to flood at Aska in the year 1990.

THE complainant had insured his stock-in-trade with the respondent No. 1 under the policy ''Shop Keeper''s Policy'' on paying requisite premium. THE respondent accepted the premium and issued a policy bearing Rs. 153201/9800002/90-91. THE policy remained valid from date 2.4.1990 to 1.4.1991. On 4.11.1990, an unprecedented flood engulfed the entire Aska Town. The shop of the complainant remained submerged with flood water for three days and entire communication was delinked. The stock with flood water of the complainant was totally damaged as claimed by him.

After the flood the complainant intimated the loss to the respondent on 8.11.1990.

AFTER the complainant sent the letters and reminders and after lapse of about two and half years, the respondent sent a cheque to the complainant for an amount of Rs. 1,43,902/- against the insured amount of Rs. 2,60,000/-. The complainant claims that the Insurance Company have satisfied the entire claim on the basis of total loss. On date 7.3.1993, the complainant lodged a protest with the respondent to pay the balance amount. The respondent intimated the complainant that the matter could not be attended to as the same has already been settled by their letter dated 28.6.1993.

BEING aggrieved by such letter, the complainant filed this case. We have heard both the Counsel for both parties and gone through the written version of the Insurance Company in detail. We have also come to know during the course of arguments that the Surveyor submitted his report on 21.6.1991 assessing the loss at Rs. 2,58,454/-. The explanation given by the Counsel, on behalf of the respondent is not convincing. There was delay in settling the claims from date 21.6.1991 to date 4.3.1993. We are not satisfied about the reasons so advanced, for not paying the value of the loss calculated by the Surveyor.

WE, therefore, in our considered opinion direct the respondent to pay Rs. 2,58,454/- as loss assessed by the Surveyor with interest at the rate of 10% from the date 21.6.1991 till the amount paid to the complainant after deducting Rs. 1,43,902/-. The only reason given for disallowing the entire claim of the complainant is that the insurer on verifying the case settled the amount for Rs. 1,43,902/-. No explanation is given as to why they did not accept the Surveyor''s report and what was wrong with it. WE accept the Surveyor''s report as correct. This order shall be given effect to within three months from the date of receipt of communication. No cost. Complaint allowed.