Chennai Ombudsman Centre
Case No. IO (CHN) 11.4.1326 / 2004 – 05
Mr. S. Mahadevan
Vs
United India Insurance Company Ltd.
Mr. S. Mahadevan, the sole Proprietor of M/s. Esgee Die Castings, TASS Industrial Estate, Chennai, insured the raw-materials and finished castings under Burglary and House Breaking Policy with United India Insurance Company Limited for a sum insured of Rs. 5,50,000/- for the period from 1.10.2002 to 30.9.2003. On 3.7.2003, a theft occurred in the factory premises and the same was intimated to the police and the Insurer. The insurer rejected the claim on the ground that the loss happened without any violent and forcible entry. They also pointed out that the material which was lost was kept in the open and there was no evidence of forcible entry because of which the incident cannot be termed as “burglary”. The Police authorities have registered the claim under theft.
A joint hearing was conducted. The reading of the operative clause makes it clear that the policy is not giving coverage for the theft-but what is covered under the policy is only theft following upon an actual forcible and violent entry of and / or exit from the premises. The photos taken by the surveyor also proves that the theft happened to the consignment, which was placed in the open space in front of the factory premises. As the subject policy did not cover the loss of this nature, this Forum finds no fault with the Insurer.
