Claimant Fails to Overturn Surveyor's Report: Insurance Compensation Reduced.
06 December 2024
Civil Revision >> Civil & Consumer Law | Consumer Law >> Civil & Consumer Law | Inadequate payment for insurance claim >> Insurance
In a decision of Narayan v/s Punjab National Bank, Through Branch Manager, Rajasthan & Another., emphasizing the weight of surveyor reports in insurance claim settlements, the National Consumer Disputes Redressal Commission (NCDRC) has upheld a reduced compensation award, dismissing a revision petition filed by a complainant seeking a higher payout for fire damage.
The case involved a complainant whose cattle feed stock, machinery, and business records were destroyed in a fire caused by a short circuit in January 2013. The complainant had an insurance policy with Respondent No. 2, and the stock was hypothecated with Respondent No. 1, Punjab National Bank.
Chronology of the Case:
District Forum: Awarded the complainant Rs. 300,000 in addition to the Rs. 36,700 already paid by the insurance company.
State Commission: Partially allowed the insurance company's appeal, reducing the compensation to Rs. 52,320, as assessed by the surveyor's report, minus the amount already paid.
National Commission: Dismissed the complainant's revision petition, upholding the State Commission's decision.
Key Issues and Arguments:
The core dispute centered on the quantum of compensation payable under the insurance policy. The complainant argued that the actual loss was significantly higher than the amount assessed by the surveyor, citing bank-verified stock statements and purchase bills. The insurance company countered that the complainant failed to provide proper records and that the surveyor's report was the basis for the claim settlement.
NCDRC's Reasoning:
The NCDRC's decision was primarily based on the principle that surveyor reports hold significant evidentiary value in insurance claim settlements. The Commission cited several Supreme Court judgments, including:
Sri Venkateshwara Syndicate Vs. Oriental Insurance Company Limited: Emphasized the importance of surveyors as a link between insurers and the insured, and that their reports should be given due importance.
Khatema Fibres Ltd. v. New India Assurance Company Ltd.: Highlighted that consumer forums should not subject surveyor's reports to forensic examination unless there is evidence of impropriety or arbitrary rejection by the insurer.
National Insurance Co.Ltd. Vs. M/s Hareshwar Enterprises Pvt. Ltd. & Ors.: Stated that surveyor reports are considered more plausible and reliable than other investigation reports.
The NCDRC found that the surveyor's report in this case did not reveal any impropriety and that the State Commission had rightly relied on it. The Commission also rejected the complainant's argument that bank stock statements held more weight, as the bank had not verified the stock.
Outcome:
The NCDRC dismissed the complainant's revision petition, upholding the State Commission's decision to award Rs. 52,320, as assessed by the surveyor's report. The Commission emphasized the importance of surveyor reports and the need for complainants to provide sufficient evidence to challenge them.