State Consumer Disputes Redressal Commission
Ch.Narayana Reddy And Others Adilabad vs The New India Assurance Co.Ltd And ... on 30 December, 2008
BEFORE THE A BEFORE THE A.P.STATE CONSUMER DISPUTES REDRESSAL COMMISSION : AT HYDERABAD. CC.NO.13/2008 Between: Ch.Narayana Reddy, S/o.Ch.Raja Reddy, H.No.4-123, Janmabhoomi Nagar, Post : Mancherial, Adilabad Ditirict, Andhra Pradesh, Pin 504 208. Complainant. And 1.
The New India Assurance Co.Ltd.
Rep. by its Divisional Manager, Old No.114, New No.204, Kutchery Road, Mylapore, Chennai 4.
2.Divisional Forest Officer (DFO), Bhadrachalam South, Bhadrachalam, Khammam District.
3.Divisional Forest Officer, Mancherial Division, Mancherial District, Adilabad.
Opp.Parties.
CC.NO.14/2008Between:
K.Prakash Reddy, S/o.K.Mohan Reddy, H.No.4-123, Janmabhoomi Nagar, Post : Mancherial, Adilabad Ditirict, Andhra Pradesh, Pin 504 208.
Complainant.
And
1.The New India Assurance Co.Ltd.
Rep. by its Divisional Manager, Old No.114, New No.204, Kutchery Road, Mylapore, Chennai 4.
2.Divisional Forest Officer (DFO), Palvancha Division, Palavancha, Khammam District.
Opp.Parties.
CC.NO.15/2008Between:
K.Prakash Reddy, S/o.K.Mohan Reddy, H.No.4-123, Janmabhoomi Nagar, Post : Mancherial, Adilabad Ditirict, Andhra Pradesh, Pin 504 208.
Complainant.
And
1.The New India Assurance Co.Ltd.
Rep. by its Divisional Manager, Old No.114, New No.204, Kutchery Road, Mylapore, Chennai 4.
2.Divisional Forest Officer (DFO), Bhadrachalam South, Bhadrachalam, Khammam District.
Opp.Parties.
Counsel for the Complainant : Mr. P.Gopal Das.
Counsel for the Opp.Parties : Admn.stage.
QUORUM: THE HONBLE SRI JUSTICE D.APPA RAO, PRESIDENT, AND SMT.M.SHREESHA,HONBLE LADY MEMBER, TUESDAY, THE THIRTIETH DAY OF DECEMBER, TWO THOUSAND EIGHT.
Common Oral Order (Per Honble Sri Justice D.Appa Rao, President) *******
1. These three complaints pertain to the very same claims against the very same Insurance Company claiming amounts covered under the policy.
2. The claimants had purchased beedi leaves from the Government of A.P. Forest Development Corporation Limited by executing agreement with the Divisional Forest Officers, opposite parties 2 and 3, who in turn had taken insurance policy from the Insurance Company, the 1st opposite party, covering the risk by fire, storm, tempest, flood, inundations, etc. after paying premium for the leaves, kept in open khallas, pertaining to various units wherein leaves were stored. While so on 06.05.2005 due to depression in Bay of Bengal, there was cyclone, heavy rain and gale for two days due to which the beedi leaves kept in various units were damaged beyond retrieval. On that, they informed same to the Insurance Company by way of telegram which in turn deputed a surveyor before whom the documents issued by the Tahsildar and other Forest Officials were submitted. The Insurance Company intimated that the damage to beedi leaves due to rain is not covered under the terms of the policy and repudiated the claim. Despite the fact that the policy cover the said peril, the Insurance Company has unjustifiably repudiated the claim amounting to deficiency in service as well as unfair trade practice on its part. Therefore, the complainant in CC.No.13/2008 claimed Rs.22,00,000/- together with interest at 18% per annum from the date of loss till the date of realization together with compensation of Rs.5,00,000/- and costs of Rs.30,000/-.
3. The complainant in CC.No.14/2008 claimed Rs.20,00,000/- with interest at 18% per annum from the date of loss till the date of realization together with compensation of Rs.6,00,000/- and costs of Rs.20,000/-.
4. The complainant in CC.No.15/2008 claimed Rs.20,00,000/- with interest at 18% per annum from the date of loss till the date of realization together with compensation of Rs.6,00,000/- and costs of Rs.20,000/-.
5. The opposite parties did not choose to contest the matter despite a notice being served on them by way of registered post.
6. The complainants in proof of their case filed their affidavits and Exs.A.1 to A.26 in CC.No.13/2008, Exs.A.1 to A.13 in CC.No.14/2008 and Exs.A.1 to A.14.
7. The points that arise for consideration is whether the complainants are:
i) Whether the complainants are entitled to the amounts covered under the policies?
ii) Whether the claimants are entitled to compensation?
iii) If so, to what amount?
8. The complainants had purchased beedi leaves from the Govt. of Andhra Pradesh Forest Development Corporation Limited by executing agreement with the Divisional Forest Officer marked as Ex.A.1 dt.13.04.2005, 11.03.2005 and 10.03.2005 respectively in the above complaints for Unit No.14, V.R.Puram of 2005 season (CC.No.13/2008), for Unit No.20, Manguluru of 2005 season (CC.No.14/2008) and for Unit No.16, Kanduluru of 2005 season (CC.No.15/2008). Accordingly, the Divisional Forest Officer, the 2nd opposite party informed the complainant in CC.No.13/2008 that the value of beedi leaves collected at various collection centres comes to Rs.24,47,112/- and the same was covered by insurance policy covering the period from 02.05.2005 till midnight of 01.06.2005 by paying premium of Rs.12,821/-, vide Ex.A.2. Equally, the Divisional Forest Officer, the 2nd opposite party informed the complainant in CC.No.14/2008 that the value of beedi leaves collected at various collection centres come to Rs.32,01,300/- and the same was covered by insurance policy covering the period from 02.05.2005 till midnight of 01.06.2005 by paying premium of Rs.12,821/-, vide Ex.A.2. The Divisional Forest Officer, the 2nd opposite party informed the complainant in CC.No.15/2008 that the value of beedi leaves collected at various collection centres comes to Rs.41,27,509/- and the same was covered by insurance policy covering the period from 02.05.2005 till midnight of 01.06.2005 by paying premium of Rs.12,821/-, vide Ex.A.2.
9. While so, on the intervening night of 06.05.2005 the beedi leaves were damaged due to depression in Bay of Bengal as there was cyclone with heavy wind and rain. All the beedi leaves that were kept in various units were damaged and the said fact was informed by telegram, Ex.A.3 followed by letters and reminders Exs.A.4 to A.8. When the Insurance Company appointed a surveyor, the complainants have submitted various documents and letters, Exs.A.4 to A.8. Finally, it repudiated the claim alleging that it was not covered by the terms of the policy. Thereupon, the complainants gave registered notice under Ex.A.10 claiming the amounts covered under the policy.
10. The fact that complainants had purchased beedi leaves and paid amounts to the Government is evidenced by Exs.A.1 and A.2, the letter of acceptance and agreement respectively. The insurance policy was taken by the Divisional Forest Officer in the name of the complainants covering the amounts for which they had purchased the beedi leaves, after collecting premium covering the risk from 02.05.2005 to 01.06.2005. A perusal of terms and conditions of the policy, particularly Clause 6 of the policy, shows that the risk covers VI. Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation.
Loss, destruction or damage directly caused by Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood or Inundation excluding those resulting from earthquake, volcanic eruption or other convulsions of nature (wherever earthquake cover is given as an add on cover the words excluding those resulting from earthquake, volcanic eruption or other convulsions of nature shall stand deleted).
While so when there was cyclone and the beedi leaves were damaged due to inundation of rain water, the same was informed by way of telegrams to the Insurance Company requesting to depute a surveyor. When a surveyor was appointed, the complainants had submitted various documents along with their estimate of damage caused to the beedi leaves, kept at various units, which the Insurance Company had insured.
11. It is important to note that the concerned Tahsildar, a Government official issued certificates as under:
CERTIFICATE This is to certify that due to Bay of Bengal cyclone gale storms and following cyclone rains occurred w.e.f. 4-5-05 to 6-5-05 in entire Mandal of V.R.Puram of Khammam Dist. The following beedi leaves units are washed away from the winds:
1.V.R.Pruam (14 unit)
2.Kunduluru (16 unit) Hence certified.
CERTIFICATE This is to certify that due to cyclone in Bay of Bengal and following cyclone rains occurred from 4-5-2005 to 6-5-2005 in the entire mandal of Khammam District.
Despite the uncontroverted evidence, the Insurance Company had repudiated the claim as under:
DAMAGE TO BEEDI LEAVES DUE TO RAINS. PERIL NOT COVERED UNDER THE POLICY. OPERATING PERIL WAS STARTED BEFORE THE COMMENCEMENT OF THE POLICY PERIOD.
12. Evidently, the period of policy was from 02.05.2005 till midnight of 01.06.2005. The cyclone was from 04.05.2005 to 06.05.2005. It is not known how the Insurance Company could state that the operating peril has started before the commencement of the policy period. In fact, it was two days after the period of policy commenced. Apart from it, the repudiation was on the ground that the beedi leaves were damaged due to rain, which was not covered by the terms of the policy. We wish to state that the Tahsildar in unequivocal terms given certificate stating that the beedi leaves were damaged due to cyclone. It was not simple rain. Evidently, the repudiation could not be upheld as the reasons stated by them were against the terms of the policy and the evidence on record. Undoubtedly, the complainants are entitled to the amounts covered under the policy.
13. The complainants claimed compensation to a tune of Rs.5.00 lakhs to 6.00 lakhs on the ground that they had sustained loss of business or profit or whatsoever. The complainants except mentioning that they had sustained loss due to damage of beedi leaves could not file any document to show that as to what could be the profit that could have been earned by them. Without any evidence, whatsoever, awarding compensation for the entire amount claimed by them cannot be justified. In all these cases, where the complainant had undoubtedly sustained loss, a token compensation of Rs.50,000/- in each of the case could be awarded in the light of the amount for which policies were taken.
14. In the result, CC.Nos.13/2008, 14/2008 and 15/2008 are allowed in part directing the Insurance Company, the 1st opposite party, to pay Rs.22,00,000/- in CC.No.13/2008, Rs.20,00,000/- and Rs.20,00,000/- in CC.No.14 and 15/2008 respectively to the complainants, with interest at 9% per annum from the date of repudiation till the date of realization together with compensation of Rs.50,000/- each and costs of Rs.5,000/- each. Time for compliance four weeks.
PRESIDENT LADY MEMBER Dt:30.12.2008.
Vvr.
APPENDIX OF EVIDENCE Witnesses examined on behalf of the Complainant : None.
Witnesses examined on behalf of the Opp.Parties : None.
Documents marked on behalf of the Complainant in CC.No.13/2008:
Ex.A.1 13.04.2005 13.04.2005 DFO, V.R.Puram, Bhadrachalam South.
Agreement between petitioner and 2nd opp.party.
Ex.A.2 02.05.2005 DFO, Bhadrachalam South on behalf of complainant taken policy with 1st opposite party.
Ex.A.3 06.05.2005 Express Telegram by the complainant to the 1st opp.party.
Ex.A.4 20.06.2005 Letter by complainant to the 1st opp.party.
Ex.A.5 16.07.2005 Letter by complainant to Surveyor.
Ex.A.6 18.07.2005 Letter by complainant to the 1st opp.party.
Ex.A.7 31.10.2005 Letter by complainant to Surveyor.
Ex.A.8 11.10.2006 Letter by 1st opp.party to the complainant.
Ex.A.9 04.09.2006 Letter by complainant to the surveyor..
Ex.A.10 29.11.2006 Letter by complainant to the 1st opp.party.
Ex.A.11 08.06.2007 Certificate issued by Tahsildar, Vararamachandrapuram.
Ex.A.12 15.06.2007 Certificate issued by Tahsildar, Aswapuram, Khammam Dist.
Ex.A.13 07.06.2007 Certificate issued by Tahsildar, Chintur, Khammam Dist.
Ex.A.14 27.01.2005 11.03.2005 DFO, Hajipur, Mancherial, Adilabad.
Agreement between petitioner and 3nd opp.party.
Ex.A.15 02.05.2005 DFO, Mancherial on behalf of petitioner taken policy with 1st opposite party.
Ex.A.16 06.05.2005 Express Telegram by the complainant to the 1st opp.party.
Ex.A.17 20.06.2005 Letter by complainant to the 1st opp.party.
Ex.A.18 16.07.2005 Letter by complainant to Surveyor.
Ex.A.19 18.07.2005 Letter by complainant to the 1st opp.party.
Ex.A.20 31.10.2005 Letter by complainant to Surveyor.
Ex.A.21 03.10.2006 Letter by 1st opp.party to the complainant..
Ex.A.22 04.09.2006 Letter by complainant to the surveyor..
Ex.A.23 18.10.2006 Letter by complainant to the 1st opp.party.
Ex.A.24 08.06.2007 Certificate issued by Tahsildar, Vararamachandrapuram.
Ex.A.25 15.06.2007 Certificate issued by Tahsildar, Aswapuram, Khammam Dist.
Ex.A.26 07.06.2007 Certificate issued by Tahsildar, Chintur, Khammam Dist.
Documents marked on behalf of the Complainant in CC.No.14/2008:
Ex.A.1 11.03.2005 11.03.2005 DFO, Bhadrachalam South Division.
Agreement between petitioner and 2nd opp.party.
Ex.A.2 02.05.2005 DFO, Bhadrachalam South on behalf of petitioner taken policy with 1st opposite party.
Ex.A.3 06.05.2005 Express Telegram by the complainant to the 1st opp.party.
Ex.A.4 20.06.2005 Letter by complainant to the 1st opp.party.
Ex.A.5 16.07.2005 Letter by complainant to Surveyor.
Ex.A.6 18.07.2005 Letter by complainant to the 1st opp.party.
Ex.A.7 31.10.2005 Letter by complainant to Surveyor.
Ex.A.8 23.01.2006 Letter by complainant to the surveyor.
Ex.A.9 03.10.2006 Letter by 1st opp.party to the complainant.
Ex.A.10 29.11.2006 Letter by complainant to the 1st opp.party.
Ex.A.11 08.06.2007 Certificate issued by Tahsildar, Vararamachandrapuram.
Ex.A.12 15.06.2007 Certificate issued by Tahsildar, Aswapuram, Khammam Dist.
Ex.A.13 07.06.2007 Certificate issued by Tahsildar, Chintur, Khammam Dist.
Documents marked on behalf of the Complainant in CC.No.15/2008:
Ex.A.1 28.01.2005 10.03.2005 DFO, Palvancha Division.
Agreement between petitioner and 2nd opp.party.
Ex.A.2 02.05.2005 DFO, Palvancha on behalf of petitioner taken policy with 1st opposite party.
Ex.A.3 06.05.2005 Express Telegram by the complainant to the 1st opp.party.
Ex.A.4 20.06.2005 Letter by complainant to the 1st opp.party.
Ex.A.5 16.07.2005 Letter by complainant to Surveyor.
Ex.A.6 18.07.2005 Letter by complainant to the 1st opp.party.
Ex.A.7 31.10.2005 Letter by complainant to Surveyor.
Ex.A.8 23.01.2006 Letter by complainant to the surveyor.
Ex.A.9 03.10.2006 Letter by 1st opp.party to the complainant.
Ex.A.10 18.10.2006 Letter by complainant to the 1st opp.party.
Ex.A.11 29.11.2006 Letter by complainant to the 1st opp.party.
Ex.A.12 08.06.2007 Certificate issued by Tahsildar, Vararamachandrapuram.
Ex.A.14 07.06.2007 Certificate issued by Tahsildar, Chintur, Khammam Dist.
Documents marked on behalf of Opp.Parties : Nil.
PRESIDENT LADY MEMBER Dt:30.12.2008.