Manjeet Electronics Pvt Ltd, New India Assurances Co. Ltd Construction is an insurance claim dispute. Manjeet Electronics Private Limited, the complainant company, runs a business of wholesale, distribution and retail of all the leading electronic brands including Sony, Samsung, IFB, etc. The Complainant bought itself insurance from The New Indian Assurance Company Limited against any loss by way of fire, etc. It took Standard Fire and Special Perils Policy for a sum of Rs. 3,00,00,000 (Rs. Three Crores Only) which was further categorized into two parts namely Rs. 25,00,000/- for furniture, Fittings, and other whereas, Rs. 2,75,00,000/- for its stocks.

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The Complainant stated that a fire incident broke out on 17.11.2014 in its shop premise. The real cause for the fire as ascertained by the police in the FIR report, the investigator at Fire and Safety Department and the surveyor appointed by the insurer was ‘short circuit of electricity’.

1. The Complainant stated that the Surveyor ascertained loss in fire which was amounting to Rs.1,67,76,303.51. However, in its final report dated 18.09.2015, it has approved a meager sum of only Rs.36,87,203/- which was further reduced by a revised assessment wherein the net assessment of loss was assessed by the Surveyor as Rs.26,29,480/-. The complainant company submitted a claim of Rs.1,74,94,953.51 to the opposite party.
2. The Complainant states that the opposite party asked the insured to submit some documents. A reply notice was sent stating that the documents were already submitted. Despite that, the opposite party informed that the claim was treated as ‘no claim’ on account of non-receipt of requisite documents. 
3. The opposite party holds that the surveyor made deductions on account major differences in stock quantity, sales to the sister company (M/s. Wahis) which could not justified by the records available, major difference in opening stock of 1.4.2014 and closing stock of 31.3.2014 among other deductions on account of improper maintenance of books of account. It also committed to an overall 25% deduction on account of non-maintenance of proper books/accounts.  The complainant states that the sale and purchase transactions have been duly corroborated and is supported by the certificate of the Chartered Accountant i.e. Harnam Singh and Company. Thus, the finding of the Surveyor that the Complainant has not been maintaining the books of accounts and records are not based on any substantive piece of evidence and proof. 
4. In support of its argument, the complainant also highlighted a Supreme court judgement in New India Assurance Co. Ltd. Vs. Pradeep Kumar (2009) wherein it was held that the assessment of loss approved by the survey /or though a pre-requisite, is not a last and final word. The approved report is not binding on the insurer or insured.  

Judgement

The fact that the Complainant Company had taken a “Standard Fire & Special Perils Policy” for the said Shop and that there was a fire accident on 17.11.2014 in the said shop was established. Further, the Police, Fire and Safety Department were promptly informed about the accident. The complainant being a consumer, it was held by the court that the objection of the Opposite Party does not hold ground and needs to be ignored.

Further, examining the surveyor’s report, the court observes instances of double deductions wherein the deductions have not been properly made leading to same deductions occurring more than once along with other irregularities. Further an overall deduction of 50% was observed without mentioning any appropriate reason. Also, no justification could be found as to why the sale to the sister concern of the insured has been disallowed. All of this weakened the case of the insurance company. Thus, the court held that the surveyor has not done a proper job at arriving at the correct deduction.

Considering the relevant aspects, the court arrived at a net loss of Rs.89,01,960/- and furniture, and fitting loss of Rs.4,45,122/-, adding up to Rs.93,47,082/-  

For the aforesaid reasons, the Opposite Party is directed to pay a sum of Rs.93,47,082/- along with a delay compensation @ 5% till realization from three months of the original Surveyor’s report till realization within a period of two months for the delay caused in settling the claim of the complainant. Any delay beyond this, would entail an interest rate of 9%.