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Judgment
V.K.Jain, J
IA/20010/2017 (C/delay)
There is a delay of 26 days in filing this appeal. Considering all the facts and circumstances of the case including the reasons given in the application, the said delay is condoned subject to payment of Rs.10,000/- as cost to the complainant. The application stands disposed of.
FA/2484/2017
The complainant took a Shopkeepers Package Policy from the petitioner company for the period from 26.11.2015 to 25.11.2016. Under the said policy, the insured goods were covered to the extent of Rs.10 lakhs against fire and allied perils, whereas they were covered to the extent of Rs.11 lakhs in case of burglary and robbery. The aforesaid policy to the extent it is relevant reads as under:-
"Coverage Section
Particulars of Insured Interest Section
Sum Insured/Limit of Indemnity (In Rs.)
Excess
I - Fire & Allied Perils Building and/or Contents
Details as per Annexure "A"
1,000,000.00
5% of claims amount for Act of God Perils (Lighting, Storm, tempest, Food, Inundation and the like, subsidence, landslide, rockslide, earthquake, subject to a minimum of Rs.10000/-
II- Burglary & Robbery
Details as per Annexure "B"
1,100,000.00
First Rs.1000/- under each and every claim
Total Sum Insured
2, 100,000.00
Risk Location Address
District
Pin Code
PROP, SANDEP GUPTA, BUS STAND KUNKARI
JASHPUR
496225
Description
Item Description
Sum Insured
Saleable items
NET WORKS CABLE - ELECTRICAL SHOP
1,000,000.00
Total :
1,000,000.00"
It is thus evident that only the saleable items of the network cable and the electric shop of the complainant were covered under the policy taken by him.
The case of the complainant is that in a fire which broke out on 31.10.2016, the cable control room was completely damaged/burnt. On intimation being given to the insurer, a surveyor was appointed to assess the loss suffered by the complainant. The complainant submitted a claim bill of Rs.3180607/- though the fire coverage was admissible only to the extent of Rs.10 lakhs. The said claim bill covered as many as 15 items including Encoders (8), Trans Modulators (7), Set Top Boxes (200), Decoders (22), RF connectors (100) and Wire (500 meters). The surveyor, on examining the purchase invoices, found that only the Encoders, Trans Modulators and Set Top Boxes had been damaged. Window AC, electric fans and Led TV were not assessed by the surveyor as no cover for FFF had been taken in respect of those articles. The surveyor also found under insurance to the extent of 34% since the value of Encoders, Trans Modulators and Set Top Boxes was more than Rs.15 lakhs. After deduction of depreciation etc., the surveyor found the net loss to be Rs.832108/-. He, however, stated that the damaged items were not covered under the policy, the claim was not admissible and they were closing the same as 'no claim'. Since the claim was not paid, the complainant approached the concerned State Commission by way of a consumer complaint seeking payment of Rs.3180607/-.
The complaint was resisted by the appellant primarily on the ground that the damaged articles were not covered under the policy taken by the complainant.
The State Commission vide its order dated 11.10.2017, directed the insurer to pay a sum of Rs.832108/- to the complainant along with interest @ 9% p.a. from the filing of the complaint along with cost of litigation quantified at Rs.10,000/-. Being aggrieved from the order passed by the State Commission, the appellant/insurer is before this Commission by way of this appeal.
As is evident from Annexure-A to the insurance policy it is only the saleable items in the network cable and electric shop of the complainant which were insured to the extent of Rs.10 lakhs against fire and allied perils. The term 'saleable items' has not been defined in the insurance policy taken by the complainant. However, as per Black's Law Dictionary, 9th Edition, saleable means 'fit for sale in the usual course of trade at the usual selling price'. In other words, only such items were insured against fire and special and allied perils which the insured was supposed to sell in the usual course of his business. Admittedly, the complainant was engaged in the business of providing cable TV services to its subscribers. The Trans Modulators and Encoders are the equipment used for the purpose of transmitting the cable TV signals to the subscribers and were not meant for sale to them. Without using the Encoders and Trans Modulators the complainant could not have transmitted the cable TV signals to its subscribers. Therefore, the aforesaid equipment cannot be said to be the goods fit for sale in the usual course of trade of the complainant. Hence, neither the Encoders nor the Trans Modulators can be said to be covered under the insurance policy taken by the complainant. However, as far as Set top Boxes which were 200 in numbers, RF connectors which were 100 in numbers and the wires which were 500 meters in quantity are concerned, they certainly were the goods meant for sale to the subscribers since they become the property of the subscribers once they are supplied to them. Therefore, the claim was admissible to the extent of Rs.2,32,000/- in respect of 200 set top boxes, to the extent of Rs.10,000/- in respect of 100 RF connections and Rs.9500/- towards the cost of wire measuring 500 meters. The total amount reimbursable to the complainant therefore, comes to Rs.251500/-.
For the reasons stated hereinabove, the impugned order is modified by directing the appellant to pay only a sum of Rs. 251500/- to the complainant along with interest on that amount @ 9% p.a. w.e.f. 6 months from the date of submission of the claim till the date of payment.
The appeal stands disposed of. The amount deposited by the appellant with the State Commission shall be refunded to it along with interest which may have accrued on that amount after the appellant has complied with this order.