ORIENTAL INSURANCE CO.LTD Vs. SAI BODA HOTELS, REP.BY ITS MANAGING PARTNER, HYDERABAD

JUDGEMENT

(1.) This is an appeal preferred by the Insurance Company against the order of the District Consumer Forum-III, Hyderabad awarding Rs.3,80,000/- towards damage to the compound wall together with compensation of Rs.20,000/- and costs of Rs.2,000/-

(2.) The case of the complainant in brief is that it was a proprietary concern doing small business and insured the premises for Rs.1,25,000/- vide Ex.A.1 Standard Fire & Special Perils Policy for the period commencing 10.02.2005 to 09.02.2006. While so, on 25.04.2005 due to the thunderstorm and rain the compound wall of the building was collapsed and he sustained a loss of Rs.3,80,000/- which was assessed by the surveyor, G.Rama Murthy. When he made claim, it was repudiated by letter dated 23.05.2006 on the ground that the compound wall was not covered by the terms of the policy. Thereupon, he filed the complaint claiming Rs.3,80,000/- together with interest, compensation and costs.

(3.) The Insurance Company resisted the case. While admitting issuance of policy, it alleged that there was no liability on its part to pay compensation. In fact a surveyor was appointed, who assessed the loss. It further mentioned that the compound wall was not covered under the terms of the policy. Therefore, it prayed that the complaint be dismissed.