Kochi Ombudsman Centre
Case No. IO / KCH / GI / 11.003.095 /2004 – 05
Shri. Mathew Sebastian
Vs
National Insurance Company Ltd.
Shri Mathew Sebastian has filed this complaint against the respondent on their repudiation of his claim under Burglary Insurance Policy. According to the complainant he had suffered heavy loss due to the theft of his computers. He preferred a claim with the Insurer and claimed the Insured value. But the respondent rejected his claim on the plea that the cause of the loss does not come under the terms and conditions of the Burglary and House Breaking Insurance Policy. Besides, he had not taken any effective precautionary measures to prevent the loss. Aggrieved with the decision of the insurer, he had approached this Authority and prayed for an award of Rs. 213750/- as compensation.
The Insurer contented that the building was very old and it was vulnerable to the miscreants without much efforts. Insurer expects from the Insured to take reasonable precautions to prevent the loss. Since the complainant had acted against the terms and conditions of the policy, the Insurer is not liable to compensate the loss.
Taking into consideration all the records available in the file and also the contentions of the parties concerned, the Ombudsman ruled that the complainant had taken reasonable precautions to prevent the loss. The intentions of the thief/thieves are very clear. They had forcibly opened the rear door and managed to enter the main building through it.
The complainant could not be expected to engage a full time security guard to his premises. The amount of loss as assessed by the surveyors of the insurer can be taken as the basis of loss and the same is payable to the complainant subject to usual deductions, if any. Intervening the decision of the respondent this Authority is inclined to direct the respondent to allow Rs. 171750/-, subject to deductions, if any, as compensation. The complainant is thus disposed of on merits as aforesaid.
