Consumer panel gives relief to Chandigarh trader who lost shop to fire

Observing that a shopkeeper’s fire insurance claim was rejected on flimsy grounds, the State Consumer Disputes Redressal Commission has directed the insurer to settle the ₹2.7 lakh-claim for damage caused to his furniture shop by a fire.

The commission’s order came on the plea of Karam Chand, proprietor of M/s Sharma Furniture, Sector 54.

Chand had submitted that he insured his shop and the furniture therein for ₹4 lakh through United India Insurance Co Ltd, Chandigarh.

On December 11, 2018, a fire broke out at the furniture market in Sector 54, damaging his shop, furniture and other articles lying inside.

A case was also registered under Section 436 (mischief by fire or explosive substance with intent to destroy house, etc) of the Indian Penal Code at the Sector 39 police station. Subsequently, he intimated the insurer regarding the fire incident and filed a claim request, Chand stated.

However, the insurance company rejected the claim, citing absence of document regarding shop’s ownership/rent deed. Chand submitted that the shop was insured from time to time by paying the renewal premium and no papers were submitted to the company then.

Alleging deficiency of services, he approached the consumer commission.

In their response, the insurance company said a surveyor was appointed to examine the loss that was assessed at ₹2,72,633 in line with the policy’s terms and conditions.

The surveyor asked the complainant to submit proof of ownership/rent deed with regard to the premises, but the complainant did not comply.

Pleading that there was no deficiency in service on their part, the company prayed for dismissal of the complaint.

However, the commission observed that the defence of insurance company that Chand had not submitted the rent deed seemed to be without any merit, as the shop was insured by the company only after verifying the spot.

Not only this, even in the surveyor report found that the furniture shop was damaged in fire.

The commission remarked that it was clear on record that the claim was intentionally not released by the insurance company on flimsy grounds by asking him to produce rent deed, etc.

Disposing of the plea, the commission directed the company to pay ₹2,72,633 as assessed in the survey report, along with 9% annual interest from the date of filing of complaint till the date of actual realisation, within 60 days from the date of receipt of order.