Guwahati Ombudsman Centre
Complaint No. 11-005-0049/08-09
Mr. Kamal Kr. Jain
Complainant/Insured
Vs
The Oriental Insurance Co. Ltd.
Opposite Party/Insurer
The Complainant obtained a Standard Fire and Special Peril Policy from the Oriental Insurance Co. Ltd. covering the grocery stocks and contents of his shop covering the period from 19.07.2007 to 18.07.2008. On 14.06.2008, suddenly flood waters entered into the insured shop and caused damages to the stock of goods. The Insured lodged a claim for Rs.3,70,550/- which was however repudiated by the Insurance Company alleging that the damaged stocks could not be shown to the Surveyor and also the stocks stored in the temporary shed is not covered within perils of the policy. Being aggrieved, the Complainant approached this forum for redressal of his grievances.
The Insurer contended in their “Self Contained Note” that as disclosed from the survey report, the damage took place in respect of the goods stored in the temporary shed used as godown, which was not covered by the policy and no damage occurred/found to the stocks of the shop. As per General Exclusions No. 13 of the policy, There is no liability for the goods stored in the temporary shed.
During the hearing, the Complainant stated that the loss occurred in his insured shop on 14.06.2008 due to flood as flood waters entered into the shop suddenly causing such damages. He has also stated that loss was also caused to the stocks kept in the godown. The representative of the Insurer mentioned that the claim was repudiated on the ground that the loss of stock was not connected with the insured premises and their Surveyor did not find any loss of stocks on the insured premises and the loss of stocks which were found on the “Chali” is not covered under the policy. Further, according to him, the claim was repudiated as no liability attaches to the Insurer in view of the above circumstances.
The Survey Report discloses that before arrival of the Surveyor, all damaged items were destroyed under orders of authorities and the Complainant has also reported about such destruction for which he was not in a position to produce the damaged stocks. The Insured has destroyed the damaged items as per direction of the Sub-Inspector (Public Health) of the Govt.
The aforesaid Authority reported that the stocks belonging to M/s Sarawagi Traders (insured firm) owned by the Complainant were submerged by flood on 14.06.2008 and in consequence, the damaged goods were emitting foul smell in the nearby areas and polluting the atmosphere. Such damaged stocks were disposed of part by deep burial and part by dumping in river Dikrong away from human inhabitation. The Surveyor has found some damaged stocks kept in the temporary shed situated behind the insured house and he had the occasion to see those items also at the time of his inspection.
These are the items which is not connected with the claim under the policy, but the stocks valuing Rs.3,70,550/- was relating to the damaged stocks which were in the shop, damaged by flood and destroyed before arrival of the Surveyor under orders of the Government Authorities, over which the Complainant had no hand as the damaged stocks were emitting foul smell polluting the atmosphere (which were the subject matters of the claim). Repudiation of the claim is not considered to be justified and the Insurer was asked to reconsider their decision and proceed to settle the claim.
