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| DCF directs Insurance Company to pay Rs 1.5 lakhs to the complainant | | | Early Times Reporter
Jammu | Apr 20
Divisional Consumer Forum Jammu, comprising Mr. SL Pandita and Mrs. Minu Sharma as its member, has decided a law point where the Insurance Company refused to pay the loss of building which was set-ablaze by the militants as the policy was obtained in the name of the dead person and directed United India Insurance Company to make payment of Rs 1, 50, 000 along with interest @ 6 % with effect from April 8, 2004 till realization.
Moti Lal Raina and two sons of Lt Shambu Nath Raina all are residents of Chak-i-Rajwali Bessu Tehsil Doru District Anantnag presently Jammu had filed a claim of Rs 2.5 lakhs as the house in question was insured with United India Insurance Company with effect from 1991 till 2001and the last premium deposited on May 3, 2001. The said house was set-ablaze in the intervening night of 25/26 June, 2001 by unknown armed militants police station Qazigund has registered a case u/s 436 RPC. The stand of the insurance company was that Shambu Nath Raina had died on May 17, 1996 but the policy was still obtained in the name of dead person and the contract cannot be entered with a dead person so the policy obtained by mala-fide, suppression and concealment of material fact and by misrepresentation there is no insurance interest and the contract of insurance is void abnitio.
The Judgment written by Mr Pandita for the forum, after hearing both the sides, referred the identical cases decided by the Consumer Commission and State High Court and observed that in a case decided by the Consumer Protection Commission Jammu on February 8, 2004 whereby the Commission held that the property has been gutted to ashes and there is nothing on the spot and time has elapsed so in such circumstances the Commission apply method of loss and deduct 40 % of the insured amount. Applying the principle of judgment of the Commission, the Forum directed the Insurance Company to make payment of Rs 1.5 lakhs against the sum assured of Rs 2.5 lakhs after deducting 40%. The above amount shall be paid along with interest @ 6% per annum w. e. f April 8, 2004 till realization. The complainants are also held entitled to litigation expenses of Rs 2000 JNF |
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