Kupwara Consumer Commission Holds Bajaj Allianz Liable For Inadequate Assessment Of Fire Loss In Insured Poultry Farm

The District Consumer Disputes Redressal Commission, Kupwara, comprising President Peerzada Qousar Hussain and Member Ms. Nyla Yaseen, held Bajaj Allianz General Insurance Company Ltd. liable for deficiency in service after finding that the assessment of losses suffered by an insured poultry farm in a fire incident was grossly inadequate. The Commission observed that a surveyor's assessment cannot absolve an insurer of its contractual obligation to indemnify the insured to the extent of the actual loss, particularly where substantial documentary evidence supports a higher claim.

Facts

The complainant, Naseer Ahmad Khan, had insured his poultry farm unit with Bajaj Allianz General Insurance Company Ltd. for a sum insured of ₹15 lakh under a policy valid from September 3, 2015 to September 2, 2016. During the subsistence of the policy, the poultry unit was destroyed in a fire incident. An FIR was lodged and the complainant approached the insurer for settlement of the claim.

According to the complainant, he had obtained a loan for establishing the poultry unit and suffered a loss of ₹9,55,646 due to the fire. The insurer appointed a surveyor who assessed the loss at only ₹2,90,000, which amount was subsequently credited to the complainant's account and adjusted by the bank towards the outstanding loan.

Dissatisfied with the assessment and alleging that the actual loss was much higher, the complainant approached the Consumer Commission seeking redressal.

Bajaj Allianz contended that there was no deficiency in service as the loss had been assessed by a duly appointed surveyor and the corresponding amount had already been paid to the complainant. The company maintained that its liability was limited to the surveyor's findings.

Observations & Decision

The Commission observed that it was undisputed that the poultry unit was insured for ₹15 lakh and that the fire occurred during the currency of the insurance policy. It noted that the complainant had placed on record several bills, vouchers and documentary materials indicating that the loss suffered was substantially higher than the amount assessed by the surveyor.

The Commission found that the surveyor had assessed the loss at ₹3,41,715, whereas the insurer had paid only ₹2,90,000. It held that the surveyor's assessment itself was grossly inadequate and failed to reflect the actual loss suffered by the insured. The Commission further observed that the insurer had not furnished any convincing justification for assessing such a low loss despite the insured value of ₹15 lakh and the substantial documentary evidence produced by the complainant.

Taking into account the fire service report, police report and the documentary evidence on record, the Commission concluded that the complainant's claim was genuine and observed that the loss could be assessed at ₹12 lakh, which was within the sum insured under the policy.

The Commission allowed the complaint and directed Bajaj Allianz to pay ₹3 lakh to the complainant's legal heirs as the balance amount, along with interest at 5% per annum from the date of institution of the complaint. It further directed the insurer to pay ₹50,000 as compensation for mental agony and ₹10,000 towards litigation expenses. The Commission ordered compliance within 30 days, failing which the entire awarded amount would carry interest at 9% per annum.

Case Details

Case Title: Naseer Ahmad Khan v. Bajaj Allianz General Insurance Company Ltd.

Case No.: Consumer Complaint No. 04/2017

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