Ajmer Vidyut Vitram Nigam had several stores in Sikar. The goods kept in the stores were insured under a Standard Fire and Special Perils Policy and under a Burglary Policy, both issued on a floater basis by United India Insurance Company.
On the night of October 3, 2011, there was a theft at the Sikar Store Campus in Sabalpura Power Station House. Six drums containing wires were stolen. The Assistant Store Controller lodged an FIR with the Kotwali Police Station. The insurer was also informed that the theft had occurred by making a forced entry through the main gate of the circle office.
The surveyor who was appointed assessed the loss at Rs 6,33,948. However, the insurer informed on March 30, 2012, that the claim had been repudiated.
The Nigam (Corporation) challenged the repudiation by filing a consumer complaint before the Sikar District Forum. The insurer contested the case. The Forum allowed the complaint and directed the insurer to settle the claim by paying the assessed amount of Rs. 6,33,948. It also awarded Rs. 10,000 towards litigation costs.
United India appealed against the decision. The Rajasthan State Commission noted that the weight of each drum of wire was about 1,000 Kilograms (kgs), which meant that the stolen six drums weighed 6,000 kgs. It observed that committing such a theft would not be easy and would require the collective effort of several people to roll out the drums and load them onto a vehicle with the assistance of a crane. The Commission observed that the investigation conducted at the site of the incident did not reveal any vehicle marks or other evidence of theft.
