Uttarakhand State Commission Holds United India Insurance Company Liable For Rejecting Insurance Claim Suffered Due To Heavy Rains

The State Consumer Disputes Redressal Commission, Uttarakhand presided by Ms. Kumkum Rani (President) and Mr. B.S. Manral, (Member) held United India Insurance Company liable for rejecting the insurance claim of the complainant as loss suffered due to heavy rain was covered under the terms of their insurance policy. The commission relied on importance of surveyor's report and modified the compensation amount accordingly, Brief facts: The complainant, which did bees keeping business, obtained a Standard Fire and Special Perils Policy from United India Insurance Company while taking loan from Syndicate Bank. The insurance policy was valid from 20.07.2019 to 19.07.2020. Unfortunately, due to heavy rains on 19.08.2019, 130 honey boxes and beehives got destroyed. Subsequently, the complainant submitted all the required documents for surveyor's report to claim the damages. However, the insurance company denied the claim. In response, the insurance company contended that the surveyor was unable to inspect the total stock due to removal of majority stock and mixed-up boxes with different insured persons. Further, they insisted that the loss suffered by the complainant was not covered under the terms and conditions of their policy. Through an order dated 21.11.2022, the District Commission directed the insurance company to pay Rs. 5,52,500/- with 6% interest, Rs.10,000/- as compensation and Rs. 10,000/- as litigation costs. Dissatisfied by the order, the insurance company filed an appeal in the Uttarakhand State Consumer Disputes Redressal Commission (State Commission). Contention of United India Insurance Company: The insurance company contended that District commission has failed to consider the findings of the surveyor's report. Further, the District commission has overlooked the terms and conditions of the insurance policy and their written arguments. Observation of the State Commission: The commission observed that as per the surveyor's report the complainant has suffered damages worth Rs. 40,000/-. Although the surveyor pointed out that the damaged honey boxes belonged to two different parties but it failed to specify how many were possessed by the complainant. Upon review of the policy, the commission concluded that the loss suffered due to heavy rain was covered under the policy perils of the insurance company. Subsequently, the commission reaffirmed the importance of the surveyor report and modified the compensation from Rs. 5,52,500/ to Rs. 40,000/- with 6% interest. Further, the insurance company was also directed to pay Rs. 10,000/- as litigation costs. Therefore, the appeal was partly allowed and the decision of the District Commission was modified accordingly. Case title: United India Insurance Company Limited vs Sh. Baburam Kashyap Case No: First Appeal No. 34 / 2023 Date of Pronouncement: 02.12.2024 Click Here To Read/Download Order

Uttarakhand State Commission Holds United India Insurance Company Liable For Rejecting Insurance Claim Suffered Due To Heavy Rains

Amrisha Kumari

Tags