Order Name: M/S Gulzar Mohd. & Sons Vs. SBI General Insurance Co. Ltd.
Case No.: F.A. No. 1819/2018
The National Consumer Disputes Redressal Commission (NCDRC), led by Mr. Subhash Chandra and Dr. Sadhna Shanker, has clarified the significance of a surveyor’s report in insurance claims. While such a report is vital, it is not the final word in determining the outcome of a claim.
Case Background
The complainant, represented by its proprietor, had secured an SME Package Policy from SBI General Insurance to cover stock worth Rs. 45,00,000. During the policy term, a fire broke out, causing substantial damage. The complainant promptly informed the fire station, police, and the insurer. A surveyor was appointed to assess the loss. Despite the complainant’s full cooperation and submission of necessary documents, the insurer settled the claim at Rs. 3,65,275, which the complainant found unacceptable. This led to filing a complaint before the State Commission of Punjab for the full insured amount of Rs. 45,00,000, along with compensation for mental agony, harassment, and litigation costs.
State Commission’s Decision
The State Commission ruled in favor of the complainant to some extent. It ordered the insurer to pay Rs. 3,65,275 with 9% annual interest from the specified date until payment. Additionally, it awarded Rs. 50,000 for mental and physical harassment and Rs. 21,000 for litigation expenses. Unsatisfied with this decision, the complainant appealed to the National Commission.
Insurer’s Arguments
The insurer argued that the complaint was baseless and lacked merit, claiming no deficiency in service or unfair trade practice. They highlighted a discrepancy in the complainant’s name in the balance sheet and accused the complainant of hiding details about an earlier minor fire incident. They also argued that the case was too complex for summary proceedings by the Commission.
National Commission’s Observations
The National Commission focused on whether the State Commission’s reliance on the surveyor’s report was justified. The complainant’s counsel argued that all required documents were submitted, including balance sheets showing a higher closing stock than the surveyor’s estimate. They also contested the surveyor’s valuation of Dattis bags. Conversely, the insurer’s counsel maintained that the surveyor’s report was based on evidence and should not be dismissed without solid proof. They emphasized that the insurer’s liability is limited to the actual loss proven by the insured.
Commission’s Final Decision
The Commission referred to the Supreme Court’s judgment in New India Assurance Co. Ltd. vs. Pradeep Kumar, which states that while a surveyor’s report is important, it is not conclusive. Since the complainant did not provide credible evidence to counter the surveyor’s findings, the Commission upheld the State Commission’s order and dismissed the appeal. Both parties were instructed to bear their own costs.
Takeaway
The key takeaway here is that while a surveyor’s report holds significant weight in insurance claims, it is not definitive. Insured parties must provide credible evidence if they wish to challenge the findings of the surveyor to receive a fair settlement.
