NATIONAL INSURANCE COMPANY LIMITED Vs. ABDUL RASHID KICHLOO
LAWS(J&K)-1999-9-3
HIGH COURT OF JAMMU AND KASHMIR
Decided on September 08,1999

NATIONAL INSURANCE CO. LTD. Appellant
VERSUS
ABDUL RASHID KICHLOO Respondents

JUDGEMENT

DOABIA,J. - (1.) The insurance cover/policy which was provided to cover immovable property also contained exclusion clause. This reads as under : "It is hereby understood and agreed that loss or damage due to mere cracking or settlement of the building nor for any loss unless the entire building or a part thereof has collapsed through the shifting or falling away of the soil beneath it."
(2.) It is submitted that as there were mere cracks in the building and the building had not collapsed, therefore, the appellant company is not liable to meet the liability.
(3.) A surveyor was appointed in this case. He submitted his report on 16-8-1996 In this report it was stated that the minor damage has been caused to the partition walls. It was observed that the walls of the first and ground floor require re-construction. The building was however, standing. The loss was said to have been caused by heavy rains and because the land under-neath the building had sunk. The structure had developed cracks. The claim was not honoured. The respondent-complainant filed a complaint before the Commission. The Commission came to the conclusion that the complainant was entitled to be compensated. A sum of Rs. 1.00 Lakh has been assessed to meet the costs of restoration of the building. Interest at the rate of 12% p.a. has been allowed from the date of loss.;


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