ORIENTAL INSURANCE CO LTD Vs. GIRDHARI LAL TULSHIRAMJI JOSHI

JUDGEMENT

(1.) FIRST Appeal No. 515/93 has been filed against the order dated 2.6.92 passed by the Maharashtra State Consumer Disputes Redressal Commission in Complaint No. 69/92. The opposite party Insurance Company before the State Commission is the appellant before us.

(2.) THE complainant had obtained a shopkeeper's insurance policy dated 11.2.91 for a period of one year upto 11.2.92 for a total risk of Rs. 2,75,000/ - . The said policy covered the building, furniture and fixture and stock -in -trade. A devastating fire occurred on 13.5.91 and the entire shop was reduced to ashes; the complainant intimated this to the opposite party and lodged a claim for a total value of Rs. 2,75,000/ -. The opposite party got the incident surveyed through two parties i.e., M/s. Maharashtra Surveyors and M/s. Jodh Joshi & Co. M/s. Maharashtra Surveyors in their report dated 17th July, 1991 noted that the complainant's shop was completely charred and burnt leaving ashes of stock in trade. The second Surveyor assessed the loss at Rs. 2,44,700/ -, after allowing for depreciation at 20 percent on building, furniture and fixtures. Since according to the opposite party the depreciation allowed for was on a low side, they appointed another Surveyor, M/s. B.K. Indurkar & Company who assessed the loss at Rs 2,05,240/ - after allowing depreciation at 50%. On the basis of this assessment the opposite party offered an amount of Rs. 2,05,000/ - to the complainant on 7.2.92. Although the complainant received this amount in full and final settlement of his claim, he wrote to the opposite party on 8.2.92 informing that he accepted the said amount under protest.

(3.) IN their appeal against this order, the appellant -Insurance Company's main grounds are that, (i) the fire policy is a policy of indemnity and the appellants had undertaken to pay only the actual loss; (ii) the State Commission should not have awarded interest on the amount of Rs. 2,05,000/ - from 1.8.91 to 7.1.92 since the said amount was accepted by the complainant on 7.2.92 in full and final settlement of his claim; and (iii) the award of compensation of Rs. 25,000/ - for the loss of income was arbitrary.