UNITED INDIA INSURANCE CO. vs VIJAYA KUMAR TEXTILES

THIS appeal is directed against the Order of the State Commission, Tamil Nadu at Madras in O.P. No. 415 of 1992 dated 10.8.1993. The Appellant herein, United India Insurance Company has been directed by the impugned order dated 10.8.1993 of the State Commission to pay to M/s. Vijaya Kumar Textiles a sum of Rs. 3,05,732/- with interest at 18% from 26.12.1991 till the date of completion of payment on account of his claim, alongwith Rs. 25,000/- towards mental agony and Rs. 2,000/- towards costs.

THE brief facts are that the respondents herein M/s. Vijaya Kumar Textiles had insured his power loom, dyes and all other equipments and stock with the United India Insurance Company and had been renewing this Insurance Policy for several years. His stocks and building caught fire at about mid-night on 14.11.1991 when he was out of station. The fire was put off by Fire Brigade. The necessary report to the police had also been made. Thereafter a claim of Rs. 3,33,336/- was made by M/s. Vijaya Kumar Textiles on 26.12.1991. The Insurance Company appointed M/s. Asawa and Co. to assess the extent of damage due to fire accident in the Complainant''s godown. However, both the Insurance Company and the Assessor had been dragging the matter and had not come to the point of expediting a decision on the claim made by the Complainant. The fire is said to have been caused by a short-circuiting, but the Insurance Company disputed this fact on the ground that the building where stocks were stocked were RCC roofed and the electrical wiring concealed and that they did not find any sign of short circuit 0from the fittings. They also appointed one Mr. Ganesan for carrying out an investigation. He submitted his report on 2.3.1992 subscribing to the theory that the fire was " Set Fire". As regards the claim, the Insurance Company maintained that the insured has submitted false purchase bills of towels etc. obtained from the suppliers and therefore the bills etc. submitted by the insured are not dependable and in fact are fabricated. The State Commission has discussed in great detail all the evidence produced before them in regard to the cause of fire and has categorically stated that they see no reason to disagree with the final report of the investigation dated 15.1.1992 submitted by the police. This report clearly says that the source of fire was from the electrical short-circuit from behind the photo fixed to the wall of the building. Having accepted the version of the Complainant that the fire was caused by short-circuit, the State Commission proceeded to determine the extent of damage and quantum of loss for the settlement of the claim. They did not accept the claim made by the Complainant in toto as there was a doubt in view of the fact that the statement sent by the Complainant to the Bank about the stock of material took five days whereas the Bank is quite near the place of the Complainant. However, the State Commission took into account the earlier statements regarding the value of the stock as on 13.9.1991,15.10.1991 andl.ll.l992,submitted to the Bank. On the basis of these statements they arrived at a presumptive value on the basis of average.

WE have heard the Counsel for the Insurance Company as well as the Respondent-Complainant. After a very careful perusal of the detailed order passed by the State Commission, Tamil Nadu, and going through the records, we are of the considered view that the State Commission has taken all precautions to ensure that the claim is not inflated or exaggerated. At the same time they have rightly rejected the version of the Insurance Company as regards the cause of fire. In the result we see no merit in this appeal and confirm the order of the State Commission, Tamil Nadu at Madras as regards the amount of claim to be settled by the Insurance Company, alongwith interest, payment of Rs. 25,000/- towards mental agony and Rs. 2,000/- towards cost. There will be no order as to costs.