The J&K State Consumer Disputes Redressal Commission, Jammu, comprising President Smt. Nighat Sultana and Member Shri Maheep Gupta, has partly allowed a complaint filed by M/s Lakhan Pal Fabricators against New India Assurance Co. Ltd., holding that the insurance claim remained under the active consideration of the insurer and, therefore, the complaint was not barred by limitation.

Facts

The complainant, M/s Lakhan Pal Fabricators, suffered a loss on July 3, 2009 and lodged an insurance claim with New India Assurance Co. Ltd. Despite repeated requests, the claim remained unsettled. The complainant served legal notices and thereafter approached the insurer on June 5, 2013, seeking finalisation of the claim.

The complainant claimed ₹49 lakh towards the insurance claim. However, the legal notices issued by the complainant sought ₹76 lakh, while a claim bill produced along with the evidence affidavit quantified the loss at ₹73,64,392. The insurer's surveyor, however, assessed the loss at ₹4,36,050.

The Insurance Company contended that the complaint was barred by limitation, as the loss occurred on July 3, 2009, whereas the complaint was filed on September 25, 2014, more than five years later and beyond the statutory period of two years.

Observation And Decision

The Commission noted that the Insurance Company's written statement itself disclosed that the complainant's claim had inadvertently been tagged with two other claims and remained unprocessed. The insurer stated that, after receiving notice from the Commission, it had recalled the claim file and that the same would be processed in accordance with the policy terms and conditions.

The Commission observed that the insurance claim remained under the active consideration of the Insurance Company at least until June 15, 2013. It therefore held that the cause of action assumed the character of a continuing cause of action and that the complaint could not be treated as having been filed belatedly. The Commission further held that there was no requirement to file a separate application seeking condonation of delay.

On merits, the Commission noted the substantial difference between the loss claimed by the complainant and the amount assessed by the surveyor. It observed that the complainant had not produced any independent expert evidence to establish the higher loss claimed.

The Commission therefore relied upon the surveyor's report, noting that the surveyor had assessed the loss after physical inspection of the site and was an independent professional duly authorised by the IRDA.

Accordingly, the Commission directed New India Assurance Co. Ltd. to pay ₹9,95,194 to the complainant, comprising ₹4,36,050 towards the loss assessed by the surveyor, ₹5,58,144 towards compensation for delay in settlement of the claim, and ₹1,000 towards mental agony and harassment. No amount was awarded towards litigation expenses.

The amount was directed to be paid within 30 days from the date of the order, failing which the Insurance Company would be liable to pay 8% interest per annum on the entire amount of ₹9,95,194 from August 15, 2026 until final payment.

Case Title: M/s Lakhan Pal Fabricators v. New India Assurance

Case No.: C.C. No. 3619 of 2014

Appearances:

Ms. Deepali Arora, for the Complainant.

Sh. Jugal Kishore Gupta, for O.P. 1.

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