Insurance company asked to pay damages

Insurance company asked to pay damages

New Delhi: In a major relief for a businessman whose goods were destroyed due to rain water entering his godown, the Delhi Consumer Commission has asked an insurance company to pay a Rs.1.35 lakh claim to him.
Directing the Oriental Insurance Co Ltd to pay the sum to Sanjeev Kumar, the Commission rapped the company for repudiating his claim on a frivolous grounds.
“The conclusions drawn by the company were erroneous as they were drawn on presumptions,” the Commission’s president J D Kapoor said, adding the rejection of the insurance claim was based only on “surmises or conjecture”. Holding Oriental Insurance guilty of “deficiency in service,” the Commission also criticized the company’s decision not to accept the report of its own surveyor, who had categorically corroborated Mr. Kumar’s claim of damage to goods due to rain water. Mr. Kumarwas shocked to see the damage to the stock lying at his godown flooded with rain water on August 14-15, 2001.