Insurance Claim Can't Be Repudiated Solely On Surveyor's Report; Kupwara Consumer Commission Holds Bajaj Allianz Liable
The District Consumer Disputes Redressal Commission, Kupwara, comprising President Peerzada Qousar Hussain and Member Ms. Nyla Yaseen, has partly allowed a consumer complaint against Bajaj Allianz General Insurance Company Ltd., holding that an insurer cannot repudiate an insurance claim solely on the basis of a surveyor's report, particularly in the absence of independent evidence supporting the repudiation.
Facts:
The complainants, Abdul Gani Pir and Rukhsana Begum, residents of Tarathpora, Handwara, Jammu & Kashmir, were engaged in the manufacture of Hollow Bricks and tiles. For running the unit, they had obtained a loan from J&K Bank, Tarathpora Branch, Kupwara. The Hollow Bricks unit as well as the residential building were insured with Bajaj Allianz General Insurance Company Ltd. under insurance policies covering the relevant period.
The insurance coverage was in force when, on 20 March 2022, a fire broke out at the premises, causing damage to the Hollow Bricks unit, machinery, shed and residential property. An FIR was lodged at Police Station Vilgam, Kupwara. The Fire & Emergency Department confirmed the occurrence of the fire and the resulting damage, while the Tehsildar also submitted a report confirming damage to the Hollow Bricks unit.
The residential building was insured for ₹7 lakh, while the Hollow Bricks unit was insured for ₹12 lakh. The complainants claimed that the fire damaged the residential house as well as machinery and other equipment, including a generator and brick-making machine. They approached the insurance company for settlement of their insurance claim, but alleged that the insurer failed to settle the claim, following which they approached the Consumer Commission.
Contentions of the Insurance Company:
The insurance company relied upon the report of an IRDA-licensed surveyor, who inspected the site on 25 March 2022 and submitted his final report on 28 April 2022. The insurer contended that the surveyor had not found any stock at the site during his inspection and, on that basis, the claim was repudiated. The insurer also raised objections concerning the policy covering the Hollow Bricks unit and the complainants' alleged insurable interest in the property.
Observation and decision:
The Commission observed that the insurance policy and occurrence of the fire were not disputed. It held that the insurer failed to produce sufficient evidence to justify repudiation of the claim merely because no stock was found during the survey. The Commission noted that a surveyor's report is important evidence but cannot be treated as conclusive when unsupported by other evidence. The Commission also referred to the Supreme Court's position that a surveyor's report is an important piece of evidence, but “is not the last word.”
The complaint was partly allowed, directing the insurer to pay ₹4 lakh for the damage to the residential house with 6% interest, along with ₹1 lakh compensation for repudiation of the claim and the resulting harassment and inconvenience.
Appearances:
For the complainant: -Adv. Anzar Aalam and Associates
For the OPs: - Adv. Shah Khalid & Adv. Zubair Ahmad Wani & Associates.
Case Number: Consumer Complainant No:65/2024
Case Title: Abdul Gani Pir & Anr. v. Bajaj Allianz General Insurance Company Ltd. & Anr.