Branch Manager, New India Assurance Co. Ltd. Vs. A.M. Traders and Ors. - (National Consumer Disputes Redressal Commission) (07 Aug 2019)

Rejection of report of its own Surveyor by Insurance Company in absence of any valid reason or proof cannot be sustained

MANU/CF/0527/2019

Consumer

In present matter, aggrieved by the order passed by the State Consumer Disputes Redressal Commission, New India Assurance Company Ltd. preferred the present First Appeal under Section 19 of the Consumer Protection Act, 1986. By the impugned order, the State Commission has allowed the Complaint in part directing the Insurance Company to pay a sum of 54,46,940 with interest @ 9% p.a. from 4th August, 2006 till the date of payment together with compensation of 25,000 and costs of 10,000.

The Complaint was filed before the State Commission on 4th August, 2006, whereas the Report of J.B. Boda Surveyors Pvt. Ltd., dated 23rd March, 2009 was filed before the State Commission only after the Complainant had requested for it, on 15th December, 2011. This act of the Insurance Company in filing the Survey Report after 5 and half years of filing of the Complaint is deprecated.

There is no illegality in the observation made by the State Commission that, the report of J.B. Boda Surveyors Pvt. Ltd. is based on assumptions and technicalities and does not reflect the factual loss. The Supreme Court in Sri Venkateswara Syndicate Vs. Oriental Insurance Company Ltd. & Anr., has deprecated the stand of the Insurance Company in appointing one Surveyor after the other without given specific cogent and satisfactory reasons. Even in the instant case, the Preliminary Survey was done on 30th October, 2005 and thereafter an Investigator was appointed and still thereafter J.B. Boda Surveyors Pvt. Ltd., was appointed whose report is dated 23rd March, 2009 and at the cost of repetition the same was filed before the State Commission only on 15th December, 2011, five and half years after the Complainant has filed the Complaint. This is contrary to Regulation 9 of IRDA which stipulates that the Surveyor has to file its Report within 30 days from his appointment.

In New India Assurance Company Ltd. Vs. Luxra Enterprises Private Ltd. & Anr., the Hon'ble Apex Court has clearly laid down that, rejection of report of its own Surveyor by the Insurance Company in the absence of any valid reason or proof that the report was arbitrary or excessive cannot be sustained. In this instant case, there was no cogent reason given by the Insurance Company to appoint one Investigator and again another Surveyor. Hence, judgements rendered by the Hon'ble Supreme Court in Sri Venkateswara Syndicate and in Luxra Enterprises Pvt. Ltd. squarely apply to the facts of this case. There is no illegality or infirmity in the order of the State Commission and hence, present Appeal is dismissed.

Relevant : Sri Venkateswara Syndicate Vs. Oriental Insurance Company Ltd. & Anr. MANU/SC/1500/2009, New India Assurance Company Ltd. Vs. Luxra Enterprises Private Ltd. & Anr. MANU/SC/0644/2019

Tags : COMPENSATION DIRECTION LEGALITY