Surveyor's Report Can't Be Disregarded Without Valid Reasons, Delhi State Commission Dismisses Appeal Against National Insurance Co. Ltd.

Brief Facts:

M/s Chadha Tyre Store had secured an insurance policy with National Insurance Company Ltd. (“Insurance Company). The policy covered several risks such as fire, burglary, housebreaking, etc. During the sustenance of the policy, 5-6 unidentified individuals allegedly broke into the Complainant's shop's godowns by breaking the locks on both the front and back doors and stealing goods. The incident was reported to the police on the next day and the Complainant informed the Insurance Company through a letter. The Insurance Company appointed M/s Aditi Consultant Pvt. Ltd as a surveyor to investigate the matter. The surveyor visited the site, recorded the Complainant's statement, and received all necessary documents from the Complainant as and when requested.

However, despite the Complainant's claims of providing documents such as sale bills, trading accounts, and cash books, the Insurance Company did not settle the claim. Feeling aggrieved, the Complainant filed a consumer complaint in the District Consumer Disputes Redressal Commission, Kashmere Gate, Central Delhi (“District Commission”).

After hearing both sides, the District Commission held that the Insurance Company rightly repudiated the claim by acting upon the report of the surveyor, who was an unbiased 3rd-party. Further, the Complainant failed to provide requisite claim documents to the surveyor and had not been maintaining a stock register before the incident. Therefore, the basis of valuation could not be provided.

Dissatisfied with the order of the District Commission, the Complainant filed an appeal in the State Consumer Disputes Redressal Commission, Delhi (“State Commission”).

Observations by the Commission:

The State Commission observed that the District Commission reviewed the repudiation letter and multiple reminder letters provided as evidence. After examining these documents, the District Commission agreed with the Insurance Company's argument that the Complainant failed to furnish the necessary claimed documents to the surveyor for assessing the loss. Consequently, the surveyor recommended the repudiation of the claim, and the Insurance Company acted accordingly.

The State Commission also acknowledged that the surveyor, being a neutral party, provided a report that cannot be disregarded without valid reasons. It noted that the Complainants did not allege any bias or malfeasance on the part of the surveyor. Additionally, the State Commission observed that there were no substantial reasons presented as to why the Insurance Company should not rely on the surveyor's report.

In light of these considerations, the State Commission concluded that the Insurance Company was justified in rejecting the claim of the Complainant. It deemed the complaint to be without merit and dismissed it accordingly.