Failure To Appoint Surveyor After Receiving Intimation Of Loss: Delhi State Commission Holds National Insurance Liable For Deficiency In Service

Brief Facts of the Case

The complainant booked a consignment of household goods with Pragati Packers & Movers/transporter, which was insured by the National Insurance/insurer under a transit insurance policy covering all risks. The goods were delivered in a damaged condition, and several items, including crockery, dinner set, cooker, juicer, mixer, and clothes, were missing due to the negligence of the packers and movers. Despite complaints to both the insurer and the transporter, no damage certificate was issued, and the insurer did not appoint a surveyor to assess the loss. The lack of action forced the complainant to file a complaint before the District Commission to seek redress. The District Commission allowed the complaint and directed the insurer to process the claim. It further directed the insurer and transporter to jointly pay the complainant an amount of Rs.40, 000 as compensation. Aggrieved, by the District Commission's order the insurer filed an appeal before the State Commission of Delhi.

Contentions of the Insurer

The insurer argued that the transporter failed to issue a damage certificate, making it impossible for them to process the insurance claim. Furthermore, it was argued that the District Commission wrongly held the insurer accountable for deficiency. The insurer pleaded with the State Commission to overturn the District Commission's order.

Observations by the State Commission

The State Commission observed that the District Commission correctly established a deficiency in service by the insurer and the transporter. The complainant had dispatched household goods valued at Rs. 1,00,000 through the transporter on paying Rs. 12,000 as transportation charges and had insured the consignment with the insurer for all transit risks. On receipt, the consignment was badly damaged, which clearly showed that the transporter had been negligent. The complainant informed the insurer and requested for a survey to assess the damage but no surveyor was appointed. However, since the transporter was proceeded ex parte for non-appearance, the District Commission ordered both parties to compensate the complainant with Rs. 40,000. The failure of the insurer to appoint a surveyor after intimation of loss further reflected a flaw in service. Relying on the findings, the commission upheld the District Commission's order, concluding that the insurer and transporter were rightly held jointly liable. The appeal was subsequently dismissed.

Case Title: National Insurance Co. Ltd. Vs. Mr. Virender Batra

Case Number: F.A. No. 265/2014

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