The Gujarat State Consumer Dispute and Redressal Commission (GSCDRC) has ruled that an insurance company will have to justify why it has not paid the full assessed amount to the claimant, and if it doesn’t, it will have to pay the remaining amount.
While partially allowing the complaint of claimant Yogiraj Ginning and Oil Industries, the judicial bench of Commission members VM Chaudhary and MD Gadhvi asked the Oriental Insurance Company Ltd, “Company has not justified why it has not paid full amount of Rs 78,32,618 to the complainant. In such a situation, how can it be called full and final payment against the loss due to fire? Against the company’s surveyor’s loss assessment of Rs 78.32 lakh, it has paid only Rs 45.61 lakh. Hence the company has to pay the rest amount of Rs 32,71,167 of loss amount with nine per cent interest to the complainant.”
Commission also directed it to pay Rs 5,000 as mental torture to the complainant. Yogiraj Ginning and Oil Industries had stated that for the cotton lying in an open of the unit, it had got insurance of Rs 1 crore for the period of January 26, 2013, to February 21, 2013 from the Oriental Insurance Company Ltd.
The second insurance policy was worth Rs 5 crore for the period of January 22, 2013 to March 21, 2013. On February 19, 2013, for unknown reasons, cotton lying in the open caught fire. According to the complainant’s claim, it had suffered a loss of Rs 82,95 lakh. Against this, insurance company’s assessment was a loss of Rs 78 lakh. The complainant had accepted Rs 45.61 lakh claim with an objection. Later, filing complaint before the commission, it had claimed Rs 50 lakh from the company on interest
THE ORDER
Commission has noted that insurance company has not put any evidence on record to suggest on what basis it has come to the conclusion that complainant was entitled only to Rs 45 lakh.
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