SUBRATA DEBNATH vs National Insurance Co. Ltd.

THIS appeal is directed against the judgment and order dated 27.6.95 passed by the District Consumer Disputes Redressal Forum, Nagaon in C.P. Case No. 21/95.

THE case of the appellant is that he is a dealer in clothes at Dhing. He had a shop which was insured with the National Insurance Company Ltd. for Rs. 1 lakh. According to the appellant a fire broke out on 26.5.93 by which articles lying in the shop and godown of the appellant were completely gutted. THE shop was insured for the period from 1.3.93 to 28.2.94. Fire broke out on 26.5.93 when the insurance policy was in force. As per the terms of the policy the claimant claimed Rs. 1 lakh though the value of the articles, according to him, was much more. Immediately after the fire the claimant informed the Insurance Company and a Surveyor was sent by the Insurance Company. THE Surveyor in due course submitted report on 10.1.94. THE Surveyor assessed the loss at Rs. 90,000/- of the stock-in-trade. However, the Insurance Company allowed a sum of Rs. 69,000/- which was, however, refused. A complaint case was filed. THE District Forum rejected the claim on the ground that there was a dispute regarding the amount which the appellant was entitled. Hence the present appeal. We have heard Mr. D. Choudhury, learned Counsel for the appellant and Mr. A. Roy, learned Counsel appearing on behalf of the respondents.

Mr. Choudhury submits that the Insurance was in force when the fire broke out and when the appellant sustained the loss and, therefore, it was the duty of the Insurance Company to pay the compensation for the loss sustained. Though the loss was of more than Rs. 1 lakh, the appellant should have been paid Rs. 1 lakh.

MR. Roy, on the other hand, submits that the Surveyor''s report does not indicate the loss of Rs. 1 lakh. He has produced the original report. From the report we find that the Surveyor assessed the loss of stock-in-trade at Rs. 90,000/-. We have gone through the judgment of the District Forum. We find no reason for rejecting the claim. Accordingly, we set aside the judgment passed by the District Forum and allow the claim to the extent of Rs. 90,000/-. The amount ought to have been paid within a reasonable time which according to us is three months. Thereafter, the claimant is entitled to interest at the rate of 18% per annum on the amount of compensation of Rs. 90,000/- after the expiry of the three months'' period from the date of occurrence till realisation. We also grant Compensation of Rs. 10,000/- towards mental agony. Judgment set aside.