Had Oriental Insurance Company accepted the order of the state consumer forum on November 6, 2007, it would have had to pay an amount of Rs27 lakh at an interest of 6% to Amrit Jawanmal Shah. Now, nothing has changed except the rate of interest.

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The company moved the National Consumer Disputes Redressal Commission (NCDRC). The NCDRC set aside the 2007 order in February 2010 and directed the state forum to decide the complaint afresh allowing the company to file its defence and surveyor’s report, if any, to assess the loss suffered by Shah. However, this was anything but a development in the company’s favour as the state forum ruled in Shah’s favour again directing the firm to pay the same amount at an interest of 9% per annum from the date of repudiation.

Presiding member SR Khanzode and member SP Lale also ordered Rs25,000 to be paid as cost of complaint.

Shah had filed a complaint before the state forum on October 16, 2006, through Consumer Welfare Association, alleging deficiency in service on account of non-settlement of his insurance claim.

According to the complaint, theft of jewellery and cash from his shop in Zaveri Bazaar on April 5, 2004, had led to a loss of Rs27 lakh. Shah informed the insurance company and a police report was lodged. After survey, the surveyor and investigator appointed by the company expressed their doubt about any loss to the complainant due to the alleged theft. The company in turn lodged a police complaint against Shah under sections 420 and 511 of the Indian Penal Code for lodging a false claim in order to defraud them.

However, Shah was eventually acquitted of all charges.

The forum said that the company failed to adhere to NCDRC’s directions and neither did it file its written version on the record, nor any supplementary survey report to assess Shah’s loss. Thus the allegations in the complaint had to be taken as admitted and needed to be relied and acted upon.