Page 55 - Insurance Times April 2024

Insurance Caselaws

Shop Gutted In Fire: District Commission direction to reimburse the complainant for Rs. 8,79,855/-
plus 9% annual interest. In addition, the Insurance Company
Orders United India Insurance To Pay Rs.
must pay the claimant Rs. 30,000 as compensation for
9.24 Lakhs As Compensation. mental suffering and Rs. 15,000 towards legal expenses.

Jindal Sales vs United India Insurance Co. Ltd. The complainant paid the appropriate money and obtained
the stock insurance policy under the Standard Fire and
Summary Special Perils Policy for an insured amount of Rs 40 lakhs for
The Chandigarh District Consumer Disputes Redressal a year. The complainant claims that one unfortunate night
Commission accepted a complaint against United India in September 2019, while they were getting ready for the
Insurance Co. Ltd. for refusing to resolve a claim for a fire approaching holiday season, their shop caught fire and was
accident, despite the insurance company having a valid destroyed. After an investigation, it was determined that
policy. The complainant, who paid the premium and the cause of the fire was a short circuit in the nearby shop.
obtained a stock insurance policy, claimed that their shop The fire department worked very hard to put out the fire,
caught fire in September 2019. The fire was caused by a and major newspapers covered the incident as well as the
short circuit in a nearby shop, and the insurance company complainant's significant losses. When the incident was
sent a surveyor to investigate. The surveyor found that the reported in a timely manner, the insurance company sent a
complainant's claim was null and void due to the absence surveyor, who visited the scene of the fire accident, took
of any closing stock from the income tax return for the 2018- the complainant's version of events, recorded a statement,
19 fiscal year. The Insurance Company was unable to and requested the necessary documentation from the
produce any significant documentary evidence to refute the complainant. The fire destroyed the bills for a number of
surveyor's report, with the exception of IT reports showing things.
Nil closing stock that were later updated. The Commission
According to the invoices, the amount purchased between
was forced to accept the surveyor's assessment as accurate,
1.4.2019 and 9.9.2019 was Rs. 21,37,199.34, while the
as the surveyor had carefully reviewed all of the damage
amount sold was Rs. 26,90,911.20. Additionally, it is claimed
on-site.
that the complaint acted honestly and provided all relevant
About the case information on the accident and losses, as well as the prompt
Pawanjit Singh, the President of the Chandigarh District provision of any documents requested by the
Consumer Disputes Redressal Commission I, Surjeet Kaur, a aforementioned surveyor. After that, the surveyor filed his
Member, and Suresh Kumar Sardana, a Member, accepted report and determined that the complainant's claim was null
the complaint against United India Insurance Co. Ltd. (the and void due to the absence of any closing stock from the
Insurance Company) for its refusal to resolve a claim for a income tax return for the 2018-19 fiscal year.
fire accident even though the Insurance Company had a valid
The Standard Fire and Special Perils Policy was purchased
fire insurance policy.
by the complainant, who paid the premium and obtained a
The Insurance Company is required by the Commission's stock insurance policy worth Rs. 40 lakhs for a year. Only a

The Insurance Times April 2024 49