Uttarakhand State Commission Holds United India Insurance Company Liable for Rejecting Insurance Claim Suffered Due to Heavy Rains (Consumer Case)
The complainant, involved in beekeeping, had a Standard Fire and Special Perils Policy with United India Insurance Company while taking a loan from Syndicate Bank.
After heavy rains on 19.08.2019 destroyed 130 honey boxes and beehives, the complainant submitted the necessary documents to claim damages. However, the insurance company denied the claim, citing the surveyor’s inability to inspect the full stock due to removal of goods and mixed boxes with other insured parties. The company also argued that the loss was not covered by the policy.
The District Commission ordered the insurance company to pay Rs. 5,52,500 with 6% interest, along with compensation and litigation costs. Dissatisfied, the insurance company appealed the decision to the Uttarakhand State Consumer Disputes Redressal Commission. The Commission found that the surveyor’s report confirmed damages of Rs. 40,000 but did not specify how many of the damaged honey boxes belonged to the complainant.
Upon reviewing the insurance policy, the Commission concluded that the loss due to heavy rain was covered. It modified the compensation from Rs. 5,52,500 to Rs. 40,000 with 6% interest and directed the insurance company to pay Rs. 10,000 in litigation costs. The appeal was partly allowed, and the District Commission’s decision was modified.
Source: – Live Law
By: – Rajat Ranjan
