Consumer forum ordered National Insurance to pay Rs 2.23 lac

The consumer protection forum has ordered the National Insurance Company to pay Rs 2.23 lac to M/s India Poly Pack Industries of Kanpur towards compensation amount within 45 days. The complainant Mahesh Kumar Sharma had claimed a sum of Rs 4.26 lac with interest and damages for mental agony and legal expenses as the insurance company had failed to pay damages against the policy.

On April 24, 1991, fire broke in M/s India Poly Pack Industries due to short circuit and raw material was destroyed. According to the complainant, raw plastic material and goods were insured for Rs 5 lac for the period of December 17, 1990 to December 16, 1991. The complainant lodged an FIR with Rail Bazaar police station. On April 25, 1991, the National Insurance Company was also informed about fire and losses. The insurance company sent a surveyor who assessed the loss to the tune of Rs 4.26 lac.

Because the insurer did not pay the insurance amount, the complainant made correspondence to the insurer. But despite that the insurer did not pay the compensation amount. The insurer in its argument with the forum alleged that surveyor had assessed a loss of Rs 2,22,871, and a letter of consent was given to the complainant, but he neither gave his consent nor accomplished formalities. Then, the insurer closed the file in 1994 on the basis of 'no claim'.

The forum observed that complaint was not time barred as firm was in continuous touch with the insurance company. Sureveyor had assessed loss to the tune of Rs 2,22,871 and that letter was provided by him to claimant was not proved. Action taken by the surveyor was also not on record. Under those circumstances case closure under no claim could not be justified.

Source: http://www.insuringindia.com/