The District Consumer Disputes Redressal Commission, Baramulla/Bandipora, comprising President Peerzada Qousar Hussain and Member Ms. Nyla Yaseen, directed National Insurance Company Ltd. to compensate a shopkeeper for losses suffered in a fire incident after holding that the insurer could not deny receipt of the claim while simultaneously relying on a surveyor's report prepared pursuant to the same claim. The Commission observed that a surveyor's assessment must be supported by cogent reasons, particularly where the police and Fire & Emergency Services reports substantiate more extensive damage to the insured property.

Facts

The complaint was filed by Manzoor Ahmad Dar against J&K Grameen Bank and National Insurance Company Ltd. The complainant stated that he was running Manzoor Kiryana Store at Jalsheeri, Baramulla, which was insured with National Insurance Company. During the subsistence of the insurance policy, the shop was gutted in a fire on January 11, 2015, damaging the entire stock along with items such as a refrigerator and computer.

The complainant stated that he immediately informed the insurer, following which a surveyor inspected the premises. Although all formalities were completed, the claim was never settled, compelling him to approach the Consumer Commission. The complainant claimed that he had suffered a loss of around ₹7 lakh.

Contention of the Insurer

National Insurance Company Ltd. contested the complaint, arguing that there was no deficiency in service on its part. It contended that the complainant had neither properly lodged the insurance claim nor taken the necessary steps for its registration. The insurer further argued that the complaint was barred by limitation and involved disputed questions of fact that could not be decided without leading evidence. It also submitted that the claim could only be settled on the basis of an assessment conducted by an IRDA-approved surveyor and sought dismissal of the complaint with costs.

Observations and Decision

The Commission found that National Insurance Company Ltd.'s contention that the complainant had never approached it for settlement of the claim was contradicted by the surveyor's own report, which established that the survey had been conducted pursuant to the complainant's intimation of the fire. The Commission observed that the insurer had taken contradictory stands and held that its defence was devoid of merit.

The Commission further observed that although the surveyor had assessed the loss at ₹1.35 lakh, the assessment was not reliable as no cogent reasons had been assigned for restricting the loss to that amount. It noted that the police report and the Fire and Emergency Services report corroborated the complainant's case regarding the extensive damage caused to the insured stock. In the absence of any satisfactory explanation for the reduced assessment, the Commission declined to rely on the surveyor's report.

Accordingly, the Commission allowed the complaint and directed National Insurance Company Ltd. to pay the complainant ₹4 lakh with interest at 6% per annum from the date of institution of the complaint until realization. It also awarded ₹50,000 as compensation for mental agony and ₹30,000 towards litigation costs. The Commission directed compliance within four weeks, failing which the awarded amount would carry interest at 7% per annum from the date of institution of the complaint until realization.

Case Title: Manzoor Ahmad Dar v. J&K Grameen Bank & Anr.

Case No.: CC No. 08/2018

Counsel for the Complainant: Mr. M.Y. Bhat, Advocate

Counsel for the Opposite Parties: Mr. M. Sultan Bhat, Advocate

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