Appeal Decision on Fire Insurance Claim: Upholding Rs. 7.74 Lakh Compensation.


22 July 2025 Consumer Protection Act >> Consumer Rights  

In Kush Pandey Vs Oriental Insurance Company Ltd., the appellant, a complainant, challenged the dismissal of their complaint by the State Commission of Orissa regarding a fire insurance claim. The complainant had obtained a shopkeeper’s insurance policy for Rs. 10 lakh with Oriental Insurance Company. After a fire damaged the shop, the complainant filed a claim of Rs. 7.74 lakh, which was assessed by a surveyor at Rs. 2.4 lakh based on non-standard criteria, including the lack of proof for the loss.

Initially, the State Commission ruled in favor of the complainant, directing the insurance company to pay the claimed amount with interest and litigation costs. However, the insurance company appealed to the National Commission, which remanded the matter back for re-evaluation, specifically to assess the stock as of 31.12.2009 and account for purchases and sales between 01.01.2010 and 28.01.2010. The complainant was unable to provide adequate documentation to support the sales and purchase figures for this period.


 

 

Despite the failure to provide additional documentation, the National Commission had previously accepted the stock statement submitted by the complainant as valid, as it was submitted to the bank and verified by bank officials. On reassessment, the State Commission dismissed the complaint due to the lack of sufficient evidence.

The appellant argued that the dismissal was unjust as the National Commission had already determined the stock statement as legitimate. The insurance company, however, maintained that the complainant failed to produce key documentation, including income tax or commercial tax returns to confirm sales.

After reviewing the case, the appellate authority found that the stock statement as of 31.12.2009, valuing the stock at Rs. 9.7 lakh, was valid. However, in the absence of supporting documents for sales and purchases between 01.01.2010 and 28.01.2010, the claim amount of Rs. 7.74 lakh was upheld, with interest payable from the date of the claim.

The appeal was allowed, and the earlier decision of the State Commission was set aside. The complainant was entitled to the sum of Rs. 7.74 lakh with interest at 8% per annum, and if the payment was delayed, the interest would rise to 10% per annum.


Consumer Protection Act, 1986