Consumer Forum directs 80K relief

Visakhapatnam: The District Consumer Disputes Redressal Forum II has held an insurance company guilty of deficiency in service after the firm failed pay insurance claim amount to a complainant. 

The Forum directed the insurance firm to pay a compensation of Rs 80,000 to complainant P Srinivasa Rao, the owner of KK Cold Storage at Mindivanipalem under Anandapuram mandal in the city, besides the insurance claim of Rs 8.78 lakh with an interest of six per cent per annum and another Rs 2,500 for litigation costs. 

Srinivasa Rao filed a complaint against National Insurance Company Limited alleging that he had taken a standard fire and special perils policy for a duration of one year (December 29, 2015 to December 28, 2016). 

The policy covers on building of storage, including compounding walls, machinery and few others. Due to cyclone Roanu in May 2016, the compound wall of cold storage was damaged and resulting in a loss of Rs 9.99 lakh. 

The owner of cold storage informed the insurance company about the loss caused by the cyclone and he furnished all the documents to insurance firm claiming Rs 8.78 lakh. 

However, the insurance company had denied paying the claim to the owner claiming that the property damage was due to soil erosion, which was not covered under the policy.

When the case came up for hearing, Forum president C V Surya Bhaskaram and forum member K Saroja observed that the compound wall of storage was constructed a few years back so that it was damaged due to cyclone Roanu and there was no point to consider the soil erosion. They also observed that the entire premises in cold storage was covered under the insurance policy. 

The forum found fault with the claim of insurance company and directed its branch manager to pay the claim of complainant besides Rs 80,000 compensation for the mental agony suffered by the owner.