Forum favours businessman, imposes fine on insurance company

Coming to the rescue of a Delhi firm struggling for seven years to get an insurance claim cleared, Delhi State Dispute Redressal Commission (DSDRC) has ordered Oriental Insurance Company to pay it Rs16.32 lakh, plus fine.

Unique Fragrances suffered losses to the tune of Rs20 lakh when its warehouse was gutted in 2003. It claimed damages, but Oriental refused to pay, saying the surveyor appointed to assess the damage did not give any reason for the fire. The fact, however, was the surveyor had pegged the damage at Rs16.32 lakh.

Demanding justice, Unique Fragrances approached the district consumer forum, which asked Oriental to cough up Rs16.32 lakh and litigation cost.

Oriental appealed against the order before DSDRC, saying “since the cause of the fire was not disclosed in the complaint [filed by Unique] and the report of the surveyor was lacking on that point”, it was well within its right to repudiate the claim.

The state forum, however, upheld the district forum’s decision and disallowed further appeals in the case.

“It is for the surveyor of the insurance company to examine the circumstances and the cause of loss, which implies, [it is] for the surveyor to determine the cause of fire and as such, it was the duty of the insurance company to determine the cause of fire,” DSDRC chairman justice BA Zaidi said in his order.

“The surveyor has not mentioned in his report that it was a self-inflicted fire and assessed a loss of Rs16,32,474, which was granted by the district consumer forum. The award cannot, therefore, be faulted,” he said.

“I am happy with the consumer forum’s decision. I fought for seven years to secure the dues. I hope the company pays the insurance claim now,” Deepak Luthra, one of the partners in Unique Fragrances, told DNA.