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The National Consumer Disputes Redressal Commission (NCDRC), chaired by Mr. Subhash Chandra and Dr. Sadhna Shanker, ruled that while a surveyor’s report is significant in settling insurance claims, it is not conclusive and may be challenged if credible evidence is provided to counter it.
Case Overview
In this case, the complainant, a registered partnership firm operating a three-star hotel, had insured their property with United India Insurance for ₹3.65 crore. During the policy period, the hotel suffered significant damage due to a storm, leading to a claimed loss of ₹25 lakh. The claim was submitted on time, but after a delay of over two years, the insurer offered a settlement of ₹2.55 lakh. The complainant attempted to accept this amount under protest, but the insurer rejected the request, prompting the complainant to file a claim with the Kerala State Commission. The claim requested ₹25 lakh for actual damages, along with 12% interest, and an additional ₹2 lakh as compensation for service deficiencies. The State Commission dismissed the complaint, leading the complainant to appeal to the National Commission.
Insurer’s Defense
The insurer contended that the storm damage was accurately assessed based on Public Works Department (PWD) rates. They argued that the complainant exaggerated the claim and attempted to use the damages as an opportunity to upgrade the hotel, which was not permissible under the policy. The insurer supported the State Commission’s decision, maintaining that the appeal should be dismissed.
National Commission’s Observations
The NCDRC noted that the primary question was whether the insurer was deficient in service. The commission acknowledged the insurance policy’s validity and the storm damage. However, the complainant failed to provide sufficient documentation to substantiate the ₹25 lakh claim, even after being granted extra time to gather evidence. The surveyor’s report had assessed the insurer’s net liability at ₹2,18,493 based on PWD rates.
Referring to a Supreme Court ruling in New India Assurance Co. Ltd. vs. Pradeep Kumar, the commission noted that while the surveyor’s report is essential for settling claims, it is not conclusive and can be disputed. In this case, the complainant failed to present any credible evidence to challenge the report’s findings, leaving no grounds for the commission to reject it. Consequently, the appeal was dismissed, and the State Commission’s order was upheld.
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