Surveyor's Report Not Definitive, Can Be Challenged With Credible Evidence: NCDRC
The National Consumer Disputes Redressal Commission, presided by Mr. Subhash Chandra and Dr. Sadhna Shanker, held that although a surveyor's report is important for settling claims, it is not conclusive and can be disputed if credible evidence is presented to counter the surveyor's conclusions.
Brief Facts of the Case
The complainant, a registered partnership firm operating a three-star hotel, had insured the hotel with United India Insurance/insurer for Rs. 3.65 crore. During the policy period, the hotel suffered extensive damage due to a storm, resulting in a loss of Rs. 25 lakh. The complainant submitted a claim on time, but after over two years, the insurer offered a settlement of Rs. 2.55 lakh, which the complainant wanted to accept under protest. The insurer rejected this request. Aggrieved, the complainant filed a complaint with the State Commission of kerala, seeking Rs. 25 lakh for the actual loss, along with 12% interest, and an additional Rs. 2 lakh as compensation for deficiency in service. The State Commission dismissed the complaint, following which the complainant filed an appeal before the National Commission.
Contentions of the Insurer
The insurer argued that the losses caused by the storm and heavy rain were accurately assessed using PWD-approved rates. The insurer also contended that the complainant cannot take advantage of the damage to upgrade or improve the pre-existing structure for profit. They maintained that the claim was exaggerated and supported the State Commission's well-reasoned order, asserting that the appeal should be dismissed.
Observations by the National Commission
The National Commission observed that the main question was whether there was any deficiency in service on the part of the insurer. It was acknowledged that the insurance policy was valid at the time of the incident and that damage occurred due to heavy storm and rain. However, the complainant claimed Rs. 25,00,000 but failed to substantiate this claim with relevant documentation regarding the damaged items. Despite being granted additional time to obtain such documents, the complainant could not provide them. A surveyor's report assessed the insurer's net liability at Rs. 2,18,493 based on PWD rates. The commission referenced the Supreme Court ruling in New India Assurance Co. Ltd. Vs. Pradeep Kumar, which stated that while a surveyor's report is essential for claim settlement, it is not definitive and can be challenged. In this case, the complainant failed to present any credible evidence to counter the surveyor's findings, making it impossible to disregard the report. Consequently, the commission upheld the State Commission's order and dismissed the appeal.
Case Title: Panchajanyam Hospitalities Vs. Branch Manager, United India Insurance Co.Ltd.
Case Number: F.A. No. 144/2016