The District Consumer Disputes Redressal Commission, Kupwara, comprising President Peerzada Qousar Hussain and Member Nyla Yaseen, has directed Bajaj Allianz General Insurance Co. Ltd. to pay ₹10,87,366 to complainant Ab Rashid Bhat towards the net assessed loss caused by a fire in his insured residential house.

The Commission held that the complainant's name not being mentioned in the police and Fire & Emergency reports could not, by itself, defeat his insurance claim. It further held that the insurer could not restrict the complainant's entitlement to one-third of the assessed loss merely because the insured property was jointly owned by him and his two brothers.

Brief Facts:

The complainant, Ab Rashid Bhat, had availed a ₹16.50 lakh loan from J&K Bank, Tarathpora, Kupwara, for renovation of his residential house at Haftrada, Tarathpora. The house was insured with Bajaj Allianz General Insurance Co. Ltd. for a sum insured of ₹72 lakh. The complainant stated that the insurance policy had been renewed from time to time and was in force when a fire broke out in the house on July 28, 2024. He informed the bank and the insurance company about the incident, following which the insurer appointed a surveyor to inspect the property and assess the loss.

The complainant claimed that despite submitting the documents sought by the surveyor, the insurance company did not settle his claim. He therefore approached the District Consumer Disputes Redressal Commission, Kupwara, seeking payment of the insurance claim, compensation and litigation expenses. The insurer disputed the claim and relied upon the survey and investigation reports, which raised issues concerning the complainant's share in the jointly owned property and the extent of the loss.

The insurer's surveyor assessed the loss at ₹14,49,822. After applying a 25% reduction, the surveyor arrived at a net loss of ₹10,87,366. The surveyor thereafter recommended ₹3,62,456, representing one-third of the net loss, on the basis that the property was jointly owned by the complainant and his two brothers.

Observation and decision of the commission:

The Commission held that the complainant's name being absent from the police and Fire & Emergency reports could not by itself defeat his insurance claim. It took note of the insurer's surveyor's assessment and found no specific contractual provision in the policy restricting the complainant's indemnity to his fractional share in the property.

Accordingly, the Commission held that the complainant was entitled to the admissible loss of ₹10,87,366 and partly allowed the complaint.

The insurer was directed to pay:

• ₹10,87,366 towards the assessed loss, with 6% annual interest from the date of institution of the complaint until realization;

• ₹2 lakh as compensation for unnecessary inconvenience and failure to settle the claim; and

• ₹20,000 towards litigation expenses.

The Commission directed that the amount be deposited before it, and that the complainant would be entitled to withdraw the amount upon production of an NOC from the remaining co-owners or a declaration from a competent authority regarding the respective entitlement. The order clarified that the payment would not confer exclusive proprietary rights over the jointly owned property or determine the inter-se rights of the co-owners.

The OPs were directed to comply with the order within 30 days from the date of service of the order. In case of non-compliance, the entire awarded amount would carry 10% annual interest from the date of the order until realization.

Case No.: Consumer Complainant No: 105/2024

Case Title: Ab Rashid Bhat v. Bajaj Allianz General Insurance Co. Ltd. & Anr.

Appearances:

For the complainant: Adv. Sheikh Fayaz and Adv. Adam Malik

For the OP's: Adv. Zubair Ahmad Wani and Adv. Zahoor Ahmad Wani

Click Here To Read/Download Order