Dated: 28.02.2024

Miss Gita Verma (Judicial Member)

Order

1. The Branch Manager of Oriental Insurance Co., Sasaram and the Oriental Insurance Co. Ltd., New Delhi have challenged in this appeal the final order dated 16.05.2018 passed against them in Complaint case no. 20 of 2013, in which they were O.Ps, by District Consumer Disputes Redressal Forum, Rohtas at Sasaram. By the said order they have been ordered to pay to the complainant Rs. 5,00,000/- as his claim amount and Rs. 5,000/- as litigation cost as asked for by him within a period of two months failing which to pay the same with 8% interest per annum thereon.
2. The case of complainant is that he owns a rice mill at Majhui within Shiv sagar PS of Rohtas District named and styled as Sanjay Rice Mills. It was insured with O.Ps for Rs. 55,00,000/- (Fifty Five lacs ) under policy number 332301-11-210-466 for the period 13.03.2010 to 12.03.2011 for loss against fire and some special circumstances. He sustained a loss of Rs. 2,00,000/- in the mill due to heavy storm on 03.05.2010. Thereafter, on 07.05.2010 he suffered further loss due to heavy rainfall and storm in which milled rice of Rs. 3,00,000/- was badly damaged. He filed claim in the office of O.P.no. 1 for compensating the total loss of Rs. 5,00,000/-. The O.Ps deputed their surveyor. He went to the spot and examined the correctness of his claim. The surveyor reported that the claim was genuine but loss was upto the extent of Rs. 1,61,978/- only out of which the liability of insurance company was to pay Rs. 1,51,978/- only as per terms and conditions of the policy. But, they rejected his claim by replying that the aforesaid rice mill was not situated at Majhui rather it was situated at Sasaram. So, the claim was not maintainable.
3. It is the further case of complainant that infact his rice mill is not situated at Sasaram rather it is situated at Majhui. He had taken loan from Punjab National Bank, Sasaram for establishing the rice mill. His loan account number is 0846008700004375 and the location of the mill entered in the loan account is Majhui. The insurance premium was also paid by the said loan account. So, rejection of his claim on the aforesaid ground was quite unjustified and arbitrary. It amounted to deficiency in service on the part of O.Ps. Hence, the complaint.
4. The O.Ps appeared and contested the case. They filed written statement in which they stated inter alia that the claim was not maintainable because the rice mill was situated at Majhui but its location in the insurance policy was recorded at Sasaram. Therefore, the complaint was liable to be dismissed.
5. Heard both parties and perused the record.
6. It appears therefrom that the O.Ps had appointed a surveyor to inspect the rice mill, assessed the loss and give report to them. The surveyor’s report is annexre-3. According to annexure-3. The location of that rice mill as per policy was at Majhui, PO- Raipur Chor, PS- Shiv Sagar, District- Rohtas (Bihar) and it was hypothecated to PNB. On perusal of insurance policy (annexure no. not given) we find that the address of the complainant given in it is of Sasaram but the address of the Rice Mill given therein is the same which is given in the loan account of complainant in Punjab National Bank, Sasaram, meaning thereby at Majhui aforesaid. The insured name and address found in the policy is like this “35425475-PNB-SASARAM, A/C NO. SANJAY RICE MILL, C/C-4375, PROPRIETOR SANTOSH SINGH”. At + PO- SASARA, ROHTAS”.
7. So, we find and hold that the O.Ps had rejected the claim of complainant quite arbitrarily without understanding the address of the rice mill recorded in the policy. We further find and hold that it amounts to gross deficiency in service on their part. We also find and hold that the complainant had suffered loss due to damages caused to his mill rice by rainfall and storm. So, his claim was genuine. But the insurance company is liable to pay him Rs. 1,51,978/- only on account of his claim as per surveyor’s report (annexure-3).
8. In the result, the appeal is allowed in part on contest. The impugned order is modified as mentioned below. The O.Ps-Appellants are directed to pay Rs. 1,51,978/- only as claim amount to the complainant with 8% interest thereon w.e.f. the date of filing the claim till the date of payment within one month of the date of this order besides the litigation cost awarded by the District Forum and Rs. 20,000/- as the litigation cost of this appeal failing which they will have to pay penal interest @10% per annum on the total amount of claim and litigation costs till full and final satisfaction of this order.

This appeal stands disposed of accordingly.

Ram Prawesh Das                                             Raj Kumar Pandey                                                            Gita Verma

    (Member)                                                                (Member)                                                          (Judicial Member)

Md. Fariduzzama