Consumer State Commission Confirms Insurance Company’s Liability where insured house suffered severe damage due to flooding

LI Network

Published on: 01 October 2023 at 16:18 IST

Recently, the Consumer State Commission Redressal Commission in Uttarakhand, Dehradun, upheld the responsibility of the insurance company in a significant case.

The panel, consisting of Members Kumkum Rani and B.S. Manral, addressed an appeal challenging the judgment and order issued by the District Commission in a consumer complaint case, where the complainant was granted relief.

In this Case, the complainant had lodged a complaint to claim the insured amount from the insurance company (opposite party No. 1). According to the complaint, the complainant’s insured house suffered severe damage due to flooding, with the lobby and veranda floors collapsing, resulting in a loss of Rs. 1,50,000/- for the complainant.

Immediate notification of this loss was provided to the insurance company, and the insurance company dispatched a surveyor to inspect the insured property and capture photographs of the damaged areas.

The insurance company, based on the surveyor’s observations, rejected the claim and informed the claimant. This repudiation of the claim constituted a deficiency in service, leading the complainant to file the complaint.

Counsel for the appellant argued that only the soil in the floor had subsided due to improper compaction during construction, resulting in subsidence at a single location due to negligent construction.

The court observed that the insurance company had erroneously repudiated the claim of respondent No. 1, citing a disparity between the description of the insured property and the property where the alleged loss occurred.

The bench noted that the insured property’s description was correctly provided as Majri Mafi, Mohakampur, Dehradun in the proposal form. However, the insurance company had recorded the incorrect address of the insured property in the insurance policy coverage note.

The court concluded that the insurance company had rejected the claim on incorrect grounds, constituting a deficiency in service. Therefore, the District Commission’s contested judgment was proper and justified, with no legal or factual flaws in its findings.

Consequently, the bench dismissed the appeal.

Case Title: National Insurance Company Ltd. v. Sh. Triveni Prasad Thapliyal

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