National Insurance Co. Ltd. vs Santosh Kumar

THIS revision is directed against the order dated 10.8.2004 of Consumer Disputes Redressal Commission Uttar Pradesh, Lucknow partly allowing appeal against the order dated 11.2.2002 of a District Forum and reducing the amount of compensation to Rs. 45,000. The District Forum had ordered the petitioner/opposite party No. 1 to pay amount of Rs.1 lakh to respondent No. 1/complainant.

RESPONDENT No. 1 alleged that after taking loan of Rs. 1 lakh under Prime Minister Employment Scheme sometime in September, 1999, he started a general store. General store was got insured for a sum of Rs. 1 lakh with petitioner insurance company on 20.9.1999. On the intervening night of 15th and 16th September, 2000 some thieves entered into the general store and stole the goods laying there. On complaint being lodged with police station, FIR No. 145/2000 was registered at Police Station - Meer Ganj. Petitioner was informed of the theft. M/s. B.S. Chawla and Co., urveyor appointed by petitioner insurance company visited the general store of respondent No. 1 on 26.9.2000. Claim lodged by respondent No. 1 with the petitioner Insurance Company was repudiated by the letter dated 28.2.2001. Complaint alleging deficiency in service filed thereafter by respondent No. 1 was contested by the petitioner on a variety of grounds and for deciding present revision those grounds need not be set out here. Contention advanced by Shri P.K. Seth for petitioner was that M/s. B.S. Chawla & Co., Surveyor had assessed the loss at Rs. 17,047 and there was no basis for the State Commission to have passed order for payment of Rs. 45,000 to respondent No. 1. It was pointed out that against Surveyor''s report dated 21.11.2000, respondent No. 1 had not filed any objections. Copy of report is at pages 20 to 23 in volume I. Material portion of this report is extracted below: "The case was discussed with insured in detail and below are the observations and calculations: 1. The total stock purchases since beginning of shop is Rs. 1,71,498.0 2. The average sale as per insured is Rs. 15,000 per month. Taking 20% as Gross Profit, the net sale comes to Rs. 12,000 p.m. say Rs. 1,44,000 for the last one year. 3. Insured has given a statement of stock before loss as Rs. 1,30,350 and after loss as Rs. 10,451.

The estimated worth of stolen material comes to around 500 kgs. which is difficult to lift by one person and minimum 4 to 5 persons are required to lift/carry. Involvement of any vehicle to carry stolen goods could not be confirmed. Insured could not give any satisfactory reply to maintain stock worth Rs. 1,30,000 when there was sale of Rs. 15,000 per month. .................... The total purchase as per purchase/Invoices/bill enclosed Rs. 1,71,498 Less: Sales for one year gross Rs. 15,000 per month, Net sale Rs. 12, 000 taking 20% as G.P. Rs. 1,44,000 Rs. 27,498 Less: Balance Stock Rs. 10,451 Rs. 17,047 4. Respondent No.1 is stated to have not filed any objections to the report. In view of this report, petitioner Insurance Company could have been directed only to pay amount of Rs. 17,047 towards loss. Order of State Commission, thus, cannot be legally sustained. Since respondent No. 1 was deprived of the use of money as assessed the insurance Company is liable to compensate him by way of interest which is quantified @ 6% p.a.

ACCORDINGLY, while allowing revision aforesaid order dated 10.8.2004 is modified to the extent that respondent No. 1 is entitled to the amount of Rs. 17,047 with jnterest @ 6% p.a. from 22.1.1 i.e. after two months of the report of the Surveyor. No order as to cost. Revision Petition allowed.