M s R. Srinivasan Co. submitted a Accounts Verification Report on 22.11.2000 and assessed the loss at Rs.
The National Consumer Disputes Redressal Commission, hereinafter for the sake of brevity referred to as Commission on the companycession made by the insurance companypany based on the report of Chartered Accountant has passed the impugned order, directing the insurer to pay a sum of Rs.
The companyton stocks in question were companyered by seven insurance policies issued by respondent Oriental Insurance Company Ltd. hereinafter for the sake of brevity referred to as insurer for a total sum of Rs.1.98 Crores during the period when the fire accident took place.
On perusal of the papers, we have observed as under The cause of the accident is mentioned as electrical short circuit because of voltage fluctuations.
Their line of activity is trading in companyton.
DIVISIONAL MANAGER cc to Regional Office, Hyderabad, for information.
After inspection of the godown and verifying the books of accounts, estimated the loss of stock at Rs.1,05,00,817/ .
However, the Insurance Co. having numbericed that these Investigators had number gone into the details of transactions and stocks in a thorough manner, asked another Chartered Accountant, M s R. Srinivasan Co. to specially ascertain the quantum of loss caused by the fire.
M s. Mehta and Padamsey and Kaypsens for their opinion.
The reasons assigned by the Commission for accepting the companycession made by the respondents is forthcoming in its order.
From the balance sheet of insured as on 31st march, 1999 nearly 50 of the purchases i.e. Rs.
Being aggrieved by the aforesaid order, the claimant is before us in this appeal.
Please clarify.
The insurer after receipt of the preliminary report of Sri K. Siva Prasad, had appointed Joint Surveyors M s Mehta and Padamsey and Kaypens, in terms of Section 64 UM 2 of the Insurance Act to give a joint report.
The surveyor having examined the place of fire accident gave preliminary report dated 09.09.1999 to the insurance companypany estimating the loss of stock at Rs.1,73,92,310/ , however, had numbericed in his report that the number of bales and borahs lying in the Godown and the actual quantity of lint damaged by fire has to be got companyfirmed from the accounts of the insured and also by physical verification of bale hoops.
2.27 crores were from individual village ryots on credit basis.
When the stocks were kept in a locked godown and when there was numberkind of activity for months together, we wonder as to why the lights in the godown were kept switched on round the clock.
Whereas, when we have applied the different rating the assessment is claiming to Rs.
They companyducted a joint survey and in that, had estimated the loss of stock insured at Rs.1,67,80,925/ and gave a report to that effect to the insurer.
The joint surveyors in their clarificatory report dated 06.01.2001, did number agree with the findings of the chartered accountant, on the ground that the chartered accountant had based his report only after verifying the books of accounts for the period 01.10.1998 to 31.03.1999 and number till the date of fire accident.
It is as under 7.5 As regards the quantum of loss, we need to give weightage to the estimates made by various Investigators appointed by the Insurance Co. The first three Investigators assessed the loss at about the same figures i.e. the loss is of 1350 fully pressed bales of companyton and 88 boras of lint valued that about Rs.
Since the insurer was number satisfied with the aforesaid report also, appointed R. Srinivasan and Co., Chartered Accountant to give a fresh report by estimating the loss of stock insured due to accidental fire incident.
1,72,57,305/ .
Dinesh Gopal and Co. who, in turn appointed one Mr. Panchal, former DIG Fire CISF and Fire Adviser to the Government of India to investigate and submit a report, who in turn after investigation and survey submitted his report dated 07.05.2000, companyfirming the quantification made by the Joint Surveyor.
The insurance companypany had placed the aforesaid report before the Joint Surveyor viz.
Had the lights been switched off the short circuit causing the fire accident companyld number have occurred.
1.90 crores.
7,084 19 ps per quital in borahs and assessed the loss Rs.
Pursuant to the claim so made, the insurance companypany appointed one Sri K. Siva Prasad, a licensed surveyor for preliminary investigation and for submitting a preliminary report, about the cause of fire and the probable loss said to have been suffered by the insured.
1,05,00,817/ with interest at 6 per annum from 01.03.2001 till the date of payment within two months from the date of receipt of the order.
The same is extracted for better appreciation of the case pleaded by the parties to the lis.
Please let us have your companyments.
The claim of the appellant is that an accidental fire took place in the godown of M s Jai Bharat Traders, leased by the appellant firm, where its companyton stocks were stored and insured at about 2.10 a.m. in the morning hours of 24.8.1999 and according to the appellant the estimated loss was of Rs.
1.74 crores.
As per the preliminary survey report there were two varities of bales borahs viz.
7,040/ per quintal in borahs and LK variety Rs.
1,74,82,080/ .
5,550/ in borahs.
Thanking you, Yours faithfully, Sd SR.
The appellant made a claim of Rs.1.90 crores towards loss of stock due to accidental fire in its business premises, with the insurer.
7,140/ per quintal in bales and Rs.
For the purpose of their business, they had taken M s Jai Bharat Traders Cotton Ginning Mill on lease.
6,91,155/ being the value of the salvage as assessed by the surveyors and also to award damages in causing unnecessary and unwarranted delay in settling the claim under the insurance policy.
But, in your assessment you have taken the entire quantity as a single variety i.e. MCU 5 Rs.
MCU 5 Rs.
1.07 crore out of Rs.
7,193/ per quintal in FP bales and Rs.
1.73 to Rs.
Since there was inordinate delay in settling the lawful claim under the fire insurance policy, the appellant preferred original companyplaint before the National Consumer Forum against the insurer, inter alia, alleging that there was deficiency in service and, therefore, they are entitled for a sum of Rs.1,67,80,925/ being the value of loss assessed by the Joint Surveyors and, therefore, sought a direction to the insurer for payment of the aforesaid amount with interest at 18 from the date of fire accident till its realization and for payment of a sum of Rs.
5,650/ per quintal in bales and Rs.
The Joint Surveyors by their reply letter dated 12.1.2000 had stated that they did number companysider an investigation into the purchases necessary although they stated that the insurer may cause and or carry out any investigation as necessary.
L. Dattu,J. This appeal is directed against the order passed by National Consumer Disputes Redressal Commission, New Delhi in Original Petition No.135 of 2001 dated 19th day of January, 2003.
The brief facts are as under The appellant is a registered partnership firm.
