MUKESH PARIKH Vs. UNITED INDIA INSURANCE CO. LTD.
LAWS(NCD)-2020-1-90
NCDRC
Decided on January 23,2020

MUKESH PARIKH Appellant
VERSUS
UNITED INDIA INSURANCE CO. LTD. Respondents

JUDGEMENT

V.K.JAIN,J. - (1.) The complainants who are appellants in FA/685/2013 and respondent in FA/91/2014 obtained an insurance policy from the United India Insurance Co. Ltd. which is the respondent in FA/685/2013 and appellant in FA/91/2014, which covered the building of the complainants to the extent of Rs.45 lakhs, plant and machinery to the extent of Rs.20 lakhs and the stock of goods to the extent of Rs.35 lakhs. During subsistence of the insurance policy, the stock of Tuver Dal and Tuver Chuni kept in the mill of the complainants got damaged on 30.6.2005 due to heavy rain and flooding. On intimation being given to the insurer, R.M Sheth and Associates were appointed as the surveyors to assess the loss to the complainants. Vide their report dated 11.11.2005 they assessed the gross loss to the complainants at Rs.2645484.24. However, holding that there was under insurance to the extent of 76.65%, the surveyor recommended deduction of Rs.2025118.18 alongwith policy excess of Rs.31018.30 and recommended payment of Rs.589347.76. The said amount when offered by the insurer was not accepted by the complainants who approached the concerned State Commission by way of a consumer complaint, claiming that they had suffered loss to the extent of Rs.3311998/-.
(2.) The complaint was resisted by the insurer, primarily on the ground that there was huge under insurance and the surveyor had rightly assessed the value of the affected stock after making deduction on account of under insurance and policy excess.
(3.) The State Commission vide impugned order dated..directed the insurer to pay a sum of Rs.2645484/- to the complainants alongwith interest @ 6% p.a. from the date of the complaint, compensation quantified at Rs.25,000/- and the cost of litigation quantified at Rs.20,000/-.;


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